Economic Growth with Learning by Producing, Learning by Education and Learning by Consuming
نویسنده
چکیده
This paper proposes a dynamic economic model with wealth accumulation and human capital accumulation. The economic system consists of one production sector and one education sector. We take account of three ways of improving human capital: learning by producing, learning by education, and learning by consuming. The model describes a dynamic interdependence between wealth accumulation, human capital accumulation, and division of labor under perfect competition. We simulate the model to demonstrate existence of equilibrium points and motion of the dynamic system. We also examine effects of changes in the propensity to receive education, efficiency of learning, and efficiency of education upon dynamic paths of the system.
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