scholarly journals Economic Oscillations with Endogenous Population, Human Capital and Wealth

10.26458/1521 ◽  
2015 ◽  
Vol 15 (2) ◽  
pp. 9
Author(s):  
Wei-Bin ZHANG
Keyword(s):  
Human Capital ◽  
Growth Model ◽  
Capital Accumulation ◽  
Population Change ◽  
Choice Model ◽  
Wealth Accumulation ◽  
Human Capital Accumulation ◽  
Fertility Choice ◽  
Model Studies ◽  
Sector Model

This paper demonstrates oscillations in the economic growth model with endogenous population growth and physical and human capital accumulation proposed by Zhang (2014). This study generalizes Zhang’s model by treating all the time-independent parameters as time-dependent parameters. The model is a synthesis of the Solow growth model, Uzawa-Lucas two-sector model, and the Haavelmo population model and the Barro-Becker fertility choice model. The model studies the dynamic interdependence between population change, wealth accumulation, and human capital accumulation. We simulate the model to demonstrate existence of business cycles under different periodic shocks.  

scholarly journals A synthesis of the Uzawa-Lucas model with the Walrasian-General-Equilibrium and Neoclassical-Growth theories

2013 ◽  
Vol 58 (199) ◽  
pp. 7-38
Author(s):  
Wei-Bin Zhang
Keyword(s):  
Human Capital ◽  
Capital Accumulation ◽  
Equilibrium Points ◽  
Division Of Labour ◽  
Education Sector ◽  
Perfect Competition ◽  
Wealth Accumulation ◽  
Human Capital Accumulation ◽  
Learning Abilities ◽  
Total Productivity

This paper proposes a dynamic economic model of wealth accumulation and human capital accumulation with endogenous education. It is an extension of the Uzawa-Lucas model of a heterogeneous household economy with multiple ways of human capital accumulation. In addition to learning by education in the Uzawa-Lucas model (Uzawa, 1965; Lucas, 1988), we also consider Arrow?s ?learning by producing? (Arrow, 1962) and Zhang?s ?learning by consuming? (creative learning, Zhang, 2007) in the human capital accumulation equation. The economic system consists of one production sector and one education sector. Households differ in propensity to save, to obtain education, to consume, and in learning abilities. The model describes a dynamic interdependence between wealth accumulation, human capital accumulation, and division of labour with endogenous wealth and income distribution in perfect competition. We simulate the model to demonstrate the existence of equilibrium points and the motion of the dynamic system. We also demonstrate how changes in the propensity to obtain education, the population, the propensity to save, and the education sector?s total productivity affect economic development.

scholarly journals GLOBAL DEVELOPMENT, TRADE, HUMAN CAPITAL, AND BUSINESS CYCLES

2020 ◽  
Vol 5 (Special) ◽  
pp. 9-29
Author(s):  
Wei-Bin Zhang
Keyword(s):  
Human Capital ◽  
Growth Model ◽  
Capital Accumulation ◽  
Equilibrium Points ◽  
Human Capital Accumulation ◽  
Learning Abilities ◽  
Exogenous Shocks ◽  
Trade Model ◽  
Comprehensive Framework ◽  
National Economies

This paper generalizes the multi-country growth model with capital accumulation, human capital accumulation, economic structure and international trade by Zhang (2014) by making all the time-independent parameters in Zhang’s model as time-dependent parameters. Each national economy consists of one tradable, one non-tradable and one education sector. National economies are different in propensities to save, to obtain education and to consume, and in learning abilities. The model integrates the Solow growth model, the Uzawa two-sector growth model, the Uzawa-Lucas two-sector growth model, and the Oniki–Uzawa trade model within a comprehensive framework. Human capital accumulation is through education in the Uzawa-Lucas model, Arrow’s learning by producing, and Zhang’s learning by consuming (creative learning). The behavior of the household is described with an alternative approach to household behavior. We simulated the model to demonstrate existence of equilibrium points, motion of the dynamic system, and oscillations due to different exogenous shocks.

scholarly journals HUMAN CAPITAL AND INNOVATION IN A MONETARY SCHUMPETERIAN GROWTH MODEL

2017 ◽  
Vol 23 (5) ◽  
pp. 1875-1894 ◽  
Author(s):  
Angus C. Chu ◽  
Lei Ning ◽  
Dongming Zhu
Keyword(s):  
Monetary Policy ◽  
Human Capital ◽  
Interest Rate ◽  
Growth Model ◽  
Growth Rates ◽  
Capital Accumulation ◽  
Nominal Interest Rate ◽  
Human Capital Accumulation ◽  
Schumpeterian Growth ◽  
Long Run

This study explores the growth and welfare effects of monetary policy in a scale-invariant Schumpeterian growth model with endogenous human capital accumulation. We model money demand via a cash-in-advance (CIA) constraint on research and development (R&D) investment. Our results can be summarized as follows. We find that an increase in the nominal interest rate leads to a decrease in R&D and human capital investment, which, in turn, reduces the long-run growth rates of technology and output. This result stands in stark contrast to the case of exogenous human capital accumulation in which the long-run growth rates of technology and output are independent of the nominal interest rate. Simulating the transitional dynamics, we find that the additional long-run growth effect under endogenous human capital accumulation amplifies the welfare effect of monetary policy. Decreasing the nominal interest rate from 10% to 0% leads to a welfare gain that is equivalent to a permanent increase in consumption of 2.82% (2.38%) under endogenous (exogenous) human capital accumulation.

Mortality Reductions, Educational Attainment, and Fertility Choice

2005 ◽  
Vol 95 (3) ◽  
pp. 580-601 ◽  
Author(s):  
Rodrigo R Soares
Keyword(s):  
Human Capital ◽  
Economic Development ◽  
Life Expectancy ◽  
Demographic Transition ◽  
Capital Accumulation ◽  
Critical Level ◽  
Human Capital Accumulation ◽  
Fertility Choice ◽  
Life Expectancy At Birth ◽  
Long Run

This paper develops a model where reductions in mortality are the main force behind economic development. The model generates a pattern of changes similar to the demographic transition, where gains in life expectancy at birth are followed by reductions in fertility and increases in the rate of human capital accumulation. The onset of the transition is characterized by a critical level of life expectancy at birth, which marks the movement of the economy from a Malthusian equilibrium to an equilibrium with investments in human capital and the possibility of long-run growth.

scholarly journals Gender Discrimination, Education and Economic Growth in a Generalized Uzawa-Lucas Two-Sector Model

2014 ◽  
Vol 7 (1) ◽  
pp. 1-34
Author(s):  
Wei-Bin Zhang
Keyword(s):  
Economic Growth ◽  
Human Capital ◽  
Gender Discrimination ◽  
Capital Accumulation ◽  
Growth Models ◽  
Equilibrium Points ◽  
Utilization Efficiency ◽  
Human Capital Accumulation ◽  
Sector Model ◽  
And Gender

Abstract This paper is mainly concerned with relationships between economic growth and gender discrimination in labor markets and education. Although discrimination in different fields has well been addresses and modelled in the economic literature, there are only a few growth models with endogenous wealth and human capital accumulation, gender time distribution between work, leisure and education under gender (positive or negative) discrimination. The production and economic structures, human capital accumulation are based on the Uzawa-Lucas model, while the utility function and gender division of labor, leisure time and study time are based on the model by Zhang. The model takes account of learning by education in modeling human capital accumulation. We simulate the model to demonstrate the existence of equilibrium points and motion of the national economy. We also conduct a comparative dynamic analysis in regard to changes in discrimination in the education sector, women’s propensity to stay at home, women’s propensity to receive education, women’s knowledge utilization efficiency, and the propensity to save.

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