Redding, Stephen (1996) The low-skill, low-quality trap: strategic complementarities between human capital and R & D. The Economic Journal, 106 (435). pp. 458-470. ISSN 0013-0133
Full text not available from this repository.Abstract
This paper investigates the relationship between investments in human capital and R & D in a model of endogenous growth. Both forms of investment exhibit pecuniary externalities and are, as a result strategic complements. Multiple equilibria may occur for intermediate parameter values, and the present analysis may be seen as providing a theoretical rationalisation for the idea that an economy may become trapped in a 'low-skills' equilibrium, characterised by a poorly trained workforce and low product quality. In the presence of multiple equilibria, there may be a welfare-improving role for government policy in co-ordinating expectations.
| Item Type: | Article |
|---|---|
| Official URL: | http://www.blackwell-synergy.com/loi/ecoj |
| Additional Information: | © 1996 Royal Economic Society |
| Divisions: | Centre for Economic Performance Economics |
| Subjects: | H Social Sciences > HB Economic Theory |
| Date Deposited: | 04 Apr 2008 10:37 |
| Last Modified: | 11 Dec 2024 22:04 |
| URI: | http://eprints.lse.ac.uk/id/eprint/4106 |
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