Using cross-country estimates of physical and human capital stocks, we run the growth accounting regressions implied by a Cobb-Douglas aggregate production function. Our results indicate that human capital enters insignificantly in explaining per capita growth rates. We next specify an alternative model in which the growth rate of total factor productivity depends on a nation's human capital stock level. Tests of this specification do indicate a positive role for human capital.
|Original language||English (US)|
|Number of pages||31|
|Journal||Journal of Monetary Economics|
|State||Published - Oct 1994|
- Human capital
ASJC Scopus subject areas
- Economics and Econometrics