July 7, 2005

Human capital, R&D, and competition in macroeconomic analysis

Nieuwe impuls voor onderzoek naar arbeidsproductiviteit

Press release
De arbeidsproductiviteit is van grote invloed op de welvaart in een land. Vooral de factoren onderwijs, onderzoek & ontwikkeling en concurrentie dragen bij aan de ontwikkeling van de arbeidsproductiviteit.

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While these ideas have been incorporated into modern growth theories and tested in empirical analyses, they have not yet found their way to applied macroeconomic models used to forecast economic developments.

In this paper, we discuss various options to include human capital, R&D, and product market competition in a macroeconomic framework. We also study how policy can affect the decisions to build human capital or to perform research, and how competition policy impacts on macroeconomic outcomes. We finally sketch how these mechanisms can be implemented into the large models used at CPB.

See also background CPB Memorandum 122, "Why should governments intervene in education, and how effective is education policy?".

Authors

Erik Canton
Bert Minne
Ate Nieuwenhuis
Marc van der Steeg

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