Human capital and welfare
Stefano Bosi
- Fonction : Auteur
- PersonId : 845042
Carmen Camacho
- Fonction : Auteur
- PersonId : 921371
- IdRef : 175893594
Résumé
We introduce the Human Development Index (HDI) in a growth model to show that if households cared about human capital, even if infinitesimally, then human capital would increase forever protecting economies indirectly. Here, human capital will have an additional positive effect on social welfare through the quality of individual health and education. In a simple economy with a Cobb–Douglas technology and logarithmic preferences, we provide the explicit trajectories for human capital, consumption, and the HDI, which correspond to the balanced growth path (BGP). Using a two-step maximization strategy, we compute the optimal initial value of the control variable, in this case, the initial optimal labour supply. In other words, we prove the optimality of the BGP. We highlight a HDI crossing property: the propensity to consume has a positive effect on the HDI in the short run, but negative in the long run.
Domaines
Economies et financesFormat du dépôt | Fichier |
---|---|
Type de dépôt | Article dans une revue |
Résumé |
en
We introduce the Human Development Index (HDI) in a growth model to show that if households cared about human capital, even if infinitesimally, then human capital would increase forever protecting economies indirectly. Here, human capital will have an additional positive effect on social welfare through the quality of individual health and education. In a simple economy with a Cobb–Douglas technology and logarithmic preferences, we provide the explicit trajectories for human capital, consumption, and the HDI, which correspond to the balanced growth path (BGP). Using a two-step maximization strategy, we compute the optimal initial value of the control variable, in this case, the initial optimal labour supply. In other words, we prove the optimality of the BGP. We highlight a HDI crossing property: the propensity to consume has a positive effect on the HDI in the short run, but negative in the long run.
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Titre |
en
Human capital and welfare
|
Auteur(s) |
Stefano Bosi
1, 2, 3
, Carmen Camacho
4, 5
, David Desmarchelier
6
1
EPEE -
Centre d'Etudes des Politiques Economiques
( 1042269 )
- 4, boulevard François Mitterrand, 91025 EVRY CEDEX
- France
2
Université Paris-Saclay
( 419361 )
- Bâtiment Bréguet, 3 Rue Joliot Curie 2e ét, 91190 Gif-sur-Yvette
- France
3
UEVE -
Université d'Évry-Val-d'Essonne
( 300306 )
- Boulevard François Mitterrand 91025 Evry Cedex
- France
4
PSE -
Paris School of Economics
( 301309 )
- 48 boulevard Jourdan 75014 Paris
- France
5
PJSE -
Paris Jourdan Sciences Economiques
( 578027 )
- 48 boulevard Jourdan 75014 Paris
- France
6
BETA -
Bureau d'Économie Théorique et Appliquée
( 1001961 )
- Université de Lorraine, UFR Droit Sciences Economiques et Gestion, 13 place Carnot CO 70026, 54035 Nancy Cedex
Université de Strasbourg, Faculté des Sciences Economiques et de Gestion, 61 avenue de la Forêt Noire 67085 Strasbourg Cedex
- France
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Date de publication |
2023-04
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Nom de la revue |
|
Vulgarisation |
Non
|
Comité de lecture |
Oui
|
Audience |
Internationale
|
Public visé |
Scientifique
|
Langue du document |
Anglais
|
Mots-clés (JEL) |
|
Domaine(s) |
|
DOI | 10.1093/oep/gpac020 |
UT key WOS | 000792748300001 |
Origine :
Fichiers produits par l'(les) auteur(s)
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