Human capital accumulation, home production and equilibrium dynamics

Yunfang Hu

    Research output: Contribution to journalArticlepeer-review

    5 Citations (Scopus)

    Abstract

    In this paper, we construct a three-sector endogenous growth model in which long-run growth is propelled by human capital accumulation. We show that although the addition of a home sector to the standard two-sector endogenous growth model preserves the well-behaved balanced growth equilibrium properties, it generates new transitional dynamics around the balanced growth path. It is shown that, when there is a positive shock to physical capital, our model is more likely to exhibit paradoxical growth than are standard multisector endogenous growth models that exclude home production. Our analysis adds new results to those from the related literature on leisure.

    Original languageEnglish
    Pages (from-to)292-311
    Number of pages20
    JournalJapanese Economic Review
    Volume59
    Issue number3
    DOIs
    Publication statusPublished - 2008

    ASJC Scopus subject areas

    • Economics and Econometrics

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