RT Journal Article
T1 Growth in Illyria: the role of meritocracy in the accumulation of human capital
A1 Corchón, Luis C.
A1 Beviá, Carmen
AB 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.
PB Elsevier
SN 0165-4896
YR 2016
FD 2016-09-01
LK https://hdl.handle.net/10016/25157
UL https://hdl.handle.net/10016/25157
LA eng
NO Thanks to the MOMA network under the project ECO2014-57673-REDT for financial support. The first author acknowledges financial support from ECO2014 53051, SGR2014-515and PROMETEO/2013/037. The second author acknowledges financial supportfrom ECO2014-57442-P, and financial support from the Ministerio Economía yCompetitividad (Spain), grants S2015/HUM-3444 and MDM 2014-0431.
DS e-Archivo
RD 1 sept. 2024