CHOICE OF LOCATION, GROWTH AND WELFARE WITH UNEQUAL POLLUTION EXPOSURES

2014 ◽  
Vol 19 (Supplement_1) ◽  
pp. S58-S82 ◽  
Author(s):  
Hoang Khac Lich ◽  
Frédéric Tournemaine
Keyword(s):  
Environmental Quality ◽  
Capital Accumulation ◽  
Main Idea ◽  
Human Capital Accumulation ◽  
Lower Growth ◽  
Endogenous Growth Model ◽  
The Impact ◽  
Geographical Locations ◽  
General Individuals

We develop an endogenous growth model with human capital accumulation in which firms are polluting and heterogeneous individuals must decide, among other things, where to live. The main idea is that pollution is unequally spread across geographical locations, inducing a trade-off for individuals between environmental quality and leisure. In such economy, we show that a better environmental quality and/or a greater degree of inequality lead individuals to favour cleaner locations which, in turn, boosts long-term growth. Welfare-wise, we find that, in general, individuals prefer a greater level of consumption and leisure but lower growth and environmental quality than those which are possible to achieve. Moreover, we show that the sign of the impact of inequality on environmental quality is likely to be negative.

scholarly journals Do Long-Run Disasters Promote Human Capital in China? —The Impact of 500 Years of Natural Disasters on County-Level Human-Capital Accumulation

2020 ◽  
Vol 17 (20) ◽  
pp. 7422
Author(s):  
Zhidi Zhang ◽  
Jianqing Ruan
Keyword(s):  
Human Capital ◽  
Natural Disasters ◽  
Capital Accumulation ◽  
Capital Investment ◽  
Physical Capital ◽  
Human Capital Accumulation ◽  
Force Dynamics ◽  
Long Run ◽  
The Impact

Is there a relationship between the frequency of regional natural disasters and long-term human-capital accumulation? This article investigates the long-run causality between natural calamities and human-capital accumulation with macro and micro data. Empirical cross-county analysis demonstrates that higher frequencies of natural calamities are correlated with higher rates of human-capital accumulation. Specifically, on the basis of empirical data of the fifth census in 2000 and China’s Labor-Force Dynamics Survey in 2012, this paper exploits the two databases to infer that the high disaster frequency in the years of 1500–2000 was likely to increase regional human-capital accumulation on district level. High natural-calamity frequency reduces the expected rate of returning to physical capital, which also serves to increase human-capital. Thus, experiencing with natural disasters would influence human’s preference to human-capital investment instead of physical capital.

Secular stagnation in the modern world

2018 ◽  
pp. 125-141 ◽  
Author(s):  
S. M. Drobyshevsky ◽  
P. V. Trunin ◽  
A. V. Bozhechkova
Keyword(s):  
Public Debt ◽  
Capital Accumulation ◽  
Technological Development ◽  
Japanese Economy ◽  
Modern World ◽  
Key Factors ◽  
Destruction Process ◽  
Secular Stagnation ◽  
The Impact

The paper studies the factors of secular stagnation. Key factors of long-term slowdown in economic growth include the slowdown of technological development, aging population, human capital accumulation limits, high public debt, creative destruction process violation etc. The authors analyze key theoretical aspects of long-term stagnation and study the impact of these factors on Japanies economy. The authors conclude that most of the factors have significant influence on the Japanese economy for recent decades, but they cannot explain all dynamics. For Russia, on the contrary, we do not see any grounds for considering the decline in the economy since 2013 as an episode of secular stagnation.

scholarly journals Corruption, Taxation and the Impact on the Shadow Economy

Economies ◽  
2021 ◽  
Vol 9 (1) ◽  
pp. 18 ◽  
Author(s):  
Daniel Němec ◽  
Eva Kotlánová ◽  
Igor Kotlán ◽  
Zuzana Machová
Keyword(s):  
Tax Evasion ◽  
Capital Accumulation ◽  
Shadow Economy ◽  
Labour Force ◽  
Destructive Effect ◽  
Eu Member States ◽  
Initial Assumption ◽  
The Individual ◽  
The Impact

While assessing the economic impacts of corruption, the corruption-related transmission channels which influence taxation as such have to be duly considered. Taking the example of the Czech Republic, this article aims to evaluate the impacts corruption has on the size of the shadow economy as well as on the individual sources of long-term economic growth, making use of a transmission channel through which corruption affects the tax burden components. Using the method of an extended DSGE model, it confirms the initial assumption that an increase in perceived corruption supports the shadow economy’s growth, but at the same time, it demonstrates that corruption and especially its perception has a significantly different effect on two key areas—the capital accumulation and the labour force size. It further identifies another sector of the economy representing taxes which are prone to tax evasion while asserting that corruption has a much more destructive effect on this sector of the economy, offering generalized implications for other post-communist EU member states in a similar situation.

Human capital accumulation, income distribution, and economic growth: a demand-led analytical framework

2021 ◽  
Vol 9 (3) ◽  
pp. 319-336
Author(s):  
Gilberto Tadeu Lima ◽  
Laura Carvalho ◽  
Gustavo Pereira Serra
Keyword(s):  
Human Capital ◽  
Capital Accumulation ◽  
Analytical Framework ◽  
Output Growth ◽  
Human Capital Accumulation ◽  
Capital Utilization ◽  
Tax Rate ◽  
Long Run ◽  
The Impact ◽  
Long Run Equilibrium

This paper incorporates human capital accumulation through provision of universal public education by a balanced-budget government to a demand-driven analytical framework of functional distribution and growth of income. Human capital accumulation positively impacts on workers’ productivity in production and their bargaining power in wage negotiations. In the long-run equilibrium, a rise in the tax rate (which also denotes the share of output spent in human capital formation) lowers the pre- and after-tax wage share and physical capital utilization, and thus raises (lowers) the output growth rate when the latter is profit-led (wage-led). The impact of a higher tax rate on the employment rate (which also measures human capital utilization) in the long-run equilibrium is negative (ambiguous) when output growth is wage-led (profit-led). In any case, the supply of higher-skilled workers does not automatically create its own demand.

A cost-effectiveness analysis of social transfers on human capital accumulation

2021 ◽  
Vol 52 (207) ◽  
Author(s):  
Andrés Mideros
Keyword(s):  
Human Capital ◽  
Cost Effectiveness ◽  
Capital Accumulation ◽  
Cost Effective ◽  
Cash Transfers ◽  
Human Capital Accumulation ◽  
Effectiveness Analysis ◽  
Long Term Effect ◽  
Social Transfers

The paper reports on an ex-ante evaluation of the long-term effect of the Ecuadorian social transfer programme called “Bono de Desarrollo Humano (BDH)” on human capital accumulation. A dynamic cohort microsimulation model is used to analyse for cost-effectiveness of different policy scenarios. Results show that cash transfers do promotehuman capital accumulation but with rather small effect. Transfers targeted at critical ages are the most cost-effective to promote human capital accumulation

scholarly journals Acemoglu Meets Lucas: Institutions, Human Capital and Economic Growth

2020 ◽  
Vol 11 (4) ◽  
pp. 98
Author(s):  
Suzana Quinet de Andrade Bastos ◽  
Fabio Gama ◽  
Tiana De Paula Assis
Keyword(s):  
Human Capital ◽  
Instrumental Variables ◽  
Political Institutions ◽  
Capital Accumulation ◽  
Ordinary Least Squares ◽  
Human Capital Accumulation ◽  
Institutional Performance ◽  
Accumulation Function ◽  
Endogenous Growth Model ◽  
Endogenous Process

This paper proposes a reinterpretation of Lucas endogenous growth model (1988), once we add an institutional component as one of its determinants. Firstly, the paper develops a theoretical model that links human capital and institutions. Our modelling strategy establishes the human capital accumulation function as being derived from an endogenous process in which the institutional performance is a booster for the economy’s growth. The essay uses a 40–country panel data of the years 2000, 2005 and 2010 and implements a Pooled Ordinary Least Squares (POLS) analysis – alongside instrumental variables (IV) – aiming to validate empirically the model proposed. We verify that Lucas’ model overestimates the human capital contribution as we evaluate the significant impact that economic and political institutions have on the capability of human capital foment growth. Additionally, our estimations also suggest that human capital is, effectively, institutionally driven and works as a channel for the institutions.

Intergenerational Mobility and Unequal School Opportunity

2020 ◽  
Author(s):  
Andreu Arenas ◽  
Jean Hindriks
Keyword(s):  
Human Capital ◽  
Capital Accumulation ◽  
Intergenerational Mobility ◽  
Assortative Matching ◽  
Human Capital Accumulation ◽  
Positive Effects ◽  
Intergenerational Income Mobility ◽  
The Usa ◽  
Income Dispersion ◽  
The Impact

Abstract We analyse the impact of unequal school opportunity on intergenerational income mobility and human capital accumulation. Building upon the classical Becker–Tomes–Solon framework, we use a regime-switch model allowing for differences in income transmission across groups. We find that unequal school opportunity raises average human capital because of assortative matching. However, because income dispersion tends to be higher at the top, in most cases unequal school opportunity decreases intergenerational mobility. Calibrating the model to the USA, simulations suggest that school equalisation and desegregation policies have positive effects on mobility at relatively small efficiency costs.

scholarly journals The impact of demographic change on human capital accumulation

2009 ◽  
Vol 16 (6) ◽  
pp. 659-668 ◽  
Author(s):  
Michael Fertig ◽  
Christoph M. Schmidt ◽  
Mathias G. Sinning
Keyword(s):  
Human Capital ◽  
Demographic Change ◽  
Capital Accumulation ◽  
Human Capital Accumulation ◽  
The Impact

scholarly journals THE IMPACT OF INCREASING RETIREMENT AGE ON HEALTH SERVICES AND ECONOMIC GROWTH IN BRAZIL

2018 ◽  
Vol 16 (1) ◽  
pp. 29-41
Author(s):  
André Berardo Coelho ◽  
Nelson Leitão Paes
Keyword(s):  
Economic Growth ◽  
Human Capital ◽  
Capital Accumulation ◽  
Health Sector ◽  
Point Of View ◽  
Retirement Age ◽  
Human Capital Accumulation ◽  
The Impact ◽  
Health Care Production

This paper uses the Zon and Muysken (2001) model to investigate the effect of increasing the retirement age on health care production, human capital accumulation, and economic growth. All three sectors are interrelated, since the overall level of health affects both workers and the accumulation of human capital, while a higher level of human capital is related to better quality of health. And, finally, health and human capital affect the output of the economy. From the economic growth point of view the results seem to be positive. Increasing labor availability raises productivity in the health sector, which ultimately improves labor productivity, resulting in increased capital accumulation and economic growth. On the other hand, it is estimated a reduction in the propensity to consume and a smaller portion of the labor force allocated in the health sector.

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