Dynamic Costs of the Draft

2004 ◽  
Vol 5 (4) ◽  
pp. 381-406 ◽  
Author(s):  
Morten I. Lau ◽  
Panu Poutvaara ◽  
Andreas Wagener
Keyword(s):  
Time Allocation ◽  
Capital Accumulation ◽  
Economic Consequences ◽  
Income Taxation ◽  
Forced Labor ◽  
Public Expenditures ◽  
Human Capital Accumulation ◽  
Dynamic General Equilibrium Model ◽  
The Government ◽  
Military Draft

Abstract We propose a dynamic general-equilibrium model with human capital accumulation to evaluate the economic consequences of compulsory services (such as military draft or social work). Our analysis identifies a so far ignored dynamic cost arising from distortions in time allocation over the life cycle.We provide conservative estimates for the excess burden that arises when the government relies on forced labor rather than on income taxation to finance public expenditures. Our results suggest that eliminating the draft could produce considerable dynamic gains, both in terms of GDP and lifetime utility.

Effect of Government Spending Policies on Education on Human Capital Accumulation and Economic Growth in the Middle East and North Africa (MENA): أثر سياسات الإنفاق الحكومي على التعليم على مراكمة رأس المال البشري والنمو الاقتصادي في دول الشرق الأوسط وشمال إفريقيا (MENA)

2021 ◽  
Vol 5 (16) ◽  
pp. 65-90
Author(s):  
Emad Adnan Matyori Emad Adnan Matyori
Keyword(s):  
Economic Growth ◽  
Human Capital ◽  
Middle East ◽  
North Africa ◽  
Government Spending ◽  
Capital Accumulation ◽  
Negative Impact ◽  
Positive Impact ◽  
Human Capital Accumulation ◽  
The Government

This study aims to estimates the effect of government spending on education and its policies on the accumulation of human capital and then economic growth, for this purpose, we use the econometric method, and employed the simultaneous equations model, for a sample of fourteen countries from the Middle East and North Africa (MENA) For the period (1980- 2019); The study concluded, in the first estimates stage of the model, that most of the government spending policies on education used in the study positively affect the accumulation of human capital, except, government spending policy on education at basic educational levels, which had a negative impact. And in the second estimates stage of the model, The study concluded, a positive impact of the accumulated human capital due to government spending on education and its policies on economic growth; Consequently, government spending policies on education positively affect economic growth through the channel of human capital accumulation, expressed in the composite index based on the Barrow- Lee database of average years of schooling for the working- age population, adjusted for the quality and return of education. The study made the following recommendations: interest to international education indicators data, as it is the basis for managing the educational system. Study more government spending policies on education to reveal its role in human capital accumulation and economic growth.: interest to human capital when formulating government policies, targeting its development, and increasing its contribution to GDP.

scholarly journals Engines of Growth: Education and Innovation

2012 ◽  
Vol 63 (2) ◽  
Author(s):  
Manfred Stadler
Keyword(s):  
Human Capital ◽  
Equilibrium Model ◽  
Capital Accumulation ◽  
Education Quality ◽  
Human Capital Accumulation ◽  
Scale Invariant ◽  
Balanced Growth ◽  
Dynamic General Equilibrium Model ◽  
Accelerate Growth ◽  
Growth Equilibrium

SummaryThe paper presents a dynamic general-equilibrium model of education, quality and variety innovation, and scale-invariant growth. We consider endogenous human-capital accumulation in an educational sector and quality and variety innovation in two separate R&D sectors. In the balanced growth equilibrium education and innovation appear as in-line engines of growth and government can accelerate growth by subsidizing education or by enhancing the effectiveness of the educational sector.

Stock vs flow specification of public infrastructures: a dynamic analysis

2018 ◽  
Vol 18 (2) ◽  
Author(s):  
Rolando A. Escobar-Posada ◽  
Goncalo Monteiro
Keyword(s):  
Growth Rate ◽  
Human Capital ◽  
Fiscal Policy ◽  
Government Spending ◽  
Capital Accumulation ◽  
Public Expenditure ◽  
Human Capital Accumulation ◽  
Sector Model ◽  
The Government ◽  
The Impact

Abstract We develop a two-sector model of physical and human capital accumulation, in which the government may allocate resources to both sectors, thereby enhancing productivity. We analyze the impact of both the level of government spending and its composition on growth and welfare, and derive their respective growth-maximizing levels. We show that both the growth-maximizing and welfare-maximizing rates of allocation of public expenditure are independent of the way infrastructures are defined (flow or stock). This conclusion, however, does not extend to the dynamics of the model where the adjustment to fiscal policy is very different. After a tax cut, for instance, the growth rate of physical and human capital converge to the new equilibrium from opposite directions under the stock specification; whereas they converge from the same direction under the flow specification.

Human Capital Accumulation and Resource Abundance

2011 ◽  
pp. 66-77
Author(s):  
O. Vasilieva
Keyword(s):  
Economic Growth ◽  
Human Capital ◽  
Capital Accumulation ◽  
Relevant Literature ◽  
Harmful Effect ◽  
Human Capital Accumulation ◽  
Resource Abundance ◽  
Empirical Results ◽  
Theoretical Predictions ◽  
Crowd Out

Does resource abundance positively affect human capital accumulation? Or, alternatively, does it «crowd out» the human capital leading to the deterioration of economic growth? The paper gives an overview of the relevant literature and discusses both theoretical and empirical results obtained regarding the connection between human capital accumulation and resource abundance. It shows that despite some theoretical predictions about the harmful effect of resource abundance on human capital accumulation, unambiguous evidence of such impact that would be robust with respect to the change of resource abundance parameter has not been obtained yet.

The Agrarian Question in Contemporary Zimbabwe

2019 ◽  
Vol 49 (1) ◽  
Author(s):  
Toendepi Shonhe
Keyword(s):  
Capital Accumulation ◽  
Crop Production ◽  
Job Creation ◽  
Food Crop ◽  
Contract Farming ◽  
Agrarian Question ◽  
Food Crop Production ◽  
The Government ◽  
Agrarian Transition ◽  
Depth Interviews

The reinvestment of rural agrarian surplus is driving capital accumulation in Zimbabwe's countryside, providing a scope to foster national (re-) industrialisation and job creation. Contrary to Bernstein's view, the Agrarian Question on capital remains unresolved in Southern Africa. Even though export finance, accessed through contract farming, provides an impetus for export cash crop production, and the government-mediated command agriculture supports food crop production, the reinvestment of proceeds from the sale of agricultural commodities is now driving capital accumulation. Drawing from empirical data, gathered through surveys and in-depth interviews from Hwedza district and Mvurwi farming area in Mazowe district in Zimbabwe, the findings of this study revealed the pre-eminence of the Agrarian Question, linked to an ongoing agrarian transition in Zimbabwe. This agrarian capital elaborates rural-urban interconnections and economic development, following two decades of de-industrialisation in Zimbabwe. 

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