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4.1 Resource Allocation for Technological Advancement 4.1 Resource Allocation for Technological Advancement
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4.2 A Two Sector Model of Growth: Rebelo-I 4.2 A Two Sector Model of Growth: Rebelo-I
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4.2.1 Description of the Economy 4.2.1 Description of the Economy
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4.2.2 Balanced growth in Two-Sector Economies 4.2.2 Balanced growth in Two-Sector Economies
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4.2.3 Private and Command Economies 4.2.3 Private and Command Economies
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4.2.4 The Hamiltonian Approach 4.2.4 The Hamiltonian Approach
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4.3 A Two Sector Model of Growth: Rebelo-II 4.3 A Two Sector Model of Growth: Rebelo-II
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4.3.1 Description of the Economy 4.3.1 Description of the Economy
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4.3.2 The Private Economy 4.3.2 The Private Economy
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4.3.3 The Command Economy 4.3.3 The Command Economy
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4.4 Human Capital Formation: The Uzawa-Lucas Approach 4.4 Human Capital Formation: The Uzawa-Lucas Approach
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4.4.1 Description of the Economy 4.4.1 Description of the Economy
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4.4.2 Uzawa: The Private Economy 4.4.2 Uzawa: The Private Economy
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4.4.3 Lucas: The Private Economy 4.4.3 Lucas: The Private Economy
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4.4.4 Lucas: The Command Economy 4.4.4 Lucas: The Command Economy
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Summary Summary
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Problems Problems
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4 Chapter 4 Technical progress as a Conscious Economic Activity-I: Human Capital Formation
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Published:November 2010
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Abstract
This chapter describes models that recognize technical progress as a conscious economic activity. It examines labour skills acquired through the use of resources diverted away from the production of consumption or physical capital goods. Acquisition of novel skills by individuals constitutes an awakening of dormant abilities and should be considered as self-discovery in which unskilled manpower is transformed to a skilled work force or human capital. An important question to consider is whether there are technological limits to technical progress itself. This chapter looks at models capable of recognizing finite bounds on the rate of technical progress. Finally, it discusses balanced growth in two-sector economies as well as private economy versus command economy.
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