General equilibrium models on skill acquisition and economic development: some comments

Bobkova, Nina (2010): General equilibrium models on skill acquisition and economic development: some comments.

Abstract

Deme et al. (2005, DFN) present a general equilibrium model for the case of Lesotho with a rising step skill acquisition function. DFN show that only a large amount of government expenditure on education, training and skill acquisition can pull the economy out of its inertia. As a comment on DFN, Bandopadhyay (2006) develops a similar general equilibrium model and analyzes the impact of government expenditure on skill acquisition. He finds that the outcome on the economy is independent of the amount of the government spending. By comparing the two models I show, that Bandopadhyay's findings replicate one aspect of the findings of DFN and do not add additional insight to the discussion.

• Item Type: MPRA Paper
• Commentary on: Bandopadhyay, Titas Kumar (2006): Skill acquisition and economic development — some comments.
• Language: English
• Keywords: skill acquisition; economic development; general equilibrium; human capital
• Subjects: O - Economic Development, Technological Change, and Growth > O1 - Economic Development; J - Labor and Demographic Economics > J2 - Demand and Supply of Labor > J24 - Human Capital; Skills; Occupational Choice; Labor Productivity; I - Health, Education, and Welfare > I2 - Education and Research Insititutions > I28 - Government Policy; H - Public Economics > H5 - National Government Expenditures and Related Policies > H52 - Government Expenditures and Education

References

Bandopadhyay, T.K. (2006): Skill Acquisition and Economic Development - Some Comments. Munich Personal RePEc Archive.

Deme, M; D. Franck; and N. Naqvi (2005): A General Equilibrium Skill Acquisitions Model of Development for Lesotho. Journal of Economic Development, 30:1-15.

Harris, J.R. and M.P. Todaro (1970): Migration, Unemployment, and Development: a Two Sector Analysis. American Economic Review, 60:124-142.