Abstract
This paper surveys the burgeoning macroeconomic literature which emphasizes the role of education in models of growth and distribution, and reviews traditional partial equilibrium approaches to the economics of education. Contemporary models of growth recognize that knowledge is accumulated under a variety of market imperfections, but view the macroeconomic role of human capital accumulation as similar and complementary to that of physical investment. The complex microeconomics of education, however, suggests that education does more than increase a worker’s productive potential. We argue that such aspects need to be taken into account by macroeconomic models of growth and distribution.
Paper presented at the Fondazione Eni Enrico Mattei/The Beijer International Institute of Ecological Economics International Conference on Creation and Transfer of Knowledge: Institutions and Incentives, Castelgandolfo (Rome), 21–23 September, 1995. We are grateful to the discussant and other conference participants for helpful comments, and to F.E.E.M. for financial support.
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Bertola, G., Pirani, D.C. (1998). Market Failures, Education and Macroeconomics. In: Navaretti, G.B., Dasgupta, P., Mäler, KG., Siniscalco, D. (eds) Creation and Transfer of Knowledge. Springer, Berlin, Heidelberg. https://doi.org/10.1007/978-3-662-03738-6_9
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