Growth in Illyria: the role of meritocracy in the accumulation of human capital

Corchón, Luis C.; Beviá, Carmen

dc.contributor.author	Corchón, Luis C.
dc.contributor.author	Beviá, Carmen
dc.date.accessioned	2017-09-01T11:58:14Z
dc.date.available	2018-09-01T22:00:05Z
dc.date.issued	2016-09-01
dc.identifier.bibliographicCitation	Beviá, C., Corchón, Luis C. (2016). Growth in Illyria: The role of meritocracy in the accumulation of human capital. Mathematical Social Sciences, pp. 1-9.
dc.identifier.issn	0165-4896
dc.identifier.uri	http://hdl.handle.net/10016/25157
dc.description.abstract	In this paper we present a dynamic model of cooperative production with human capital accumulation. We assume CES preferences on consumption and leisure in each period. When agents do not care about future generations, sustained growth occurs iff the elasticity of substitution between consumption and leisure is larger or equal than one. Meritocracy always has a positive effect on output, but when the elasticity of substitution is less than one, is only a level effect. When agents care about future generations, under Cobb&-Douglas preferences in each period and some extra conditions, there is constant growth at a rate that is larger than the one when future generations do not count. For any discount rate between generations, there is a unique level of meritocracy for which efficiency is achieved.
dc.description.sponsorship	Thanks to the MOMA network under the project ECO2014-57673-REDT for financial support. The first author acknowledges financial support from ECO2014 53051, SGR2014-515 and PROMETEO/2013/037. The second author acknowledges financial support from ECO2014-57442-P, and financial support from the Ministerio Economía y Competitividad (Spain), grants S2015/HUM-3444 and MDM 2014-0431.
dc.format.extent	9
dc.format.mimetype	application/pdf
dc.language.iso	eng
dc.publisher	Elsevier
dc.rights	© Elsevier
dc.subject.other	Cooperative production
dc.subject.other	Sustained growth
dc.subject.other	Future generations
dc.subject.other	Meritocracy
dc.title	Growth in Illyria: the role of meritocracy in the accumulation of human capital
dc.type	article
dc.subject.eciencia	Economía
dc.identifier.doi	https://doi.org/10.1016/j.mathsocsci.2016.08.009
dc.rights.accessRights	openAccess
dc.relation.projectID	Gobierno de España. ECO2014-57442-P
dc.relation.projectID	Gobierno de España. MDM 2014-0431
dc.type.version	acceptedVersion
dc.identifier.publicationfirstpage	1
dc.identifier.publicationlastpage	9
dc.identifier.publicationtitle	Mathematical social sciences
dc.identifier.uxxi	AR/0000020267