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| Volume 5, No. 3,
December
2006
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A Note on the Inclusion of Human Capital in the Lucas Model |
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Bidisha
Chakraborty |
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Vijaygarh Jotish Ray College, India
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Economic Research Unit, Indian
Statistical Institute, India |
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Manash Ranjan
Gupta |
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Economic Research
Unit, Indian Statistical Institute, India |
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| Abstract |
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We include human
capital in the utility function in an otherwise standard Lucas
(1988) model of endogenous growth and show that there may be
multiple steady-state equilibria. We also analyze the
transitional dynamic properties of this model. |
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Key words:
human capital; endogenous growth; multiple steady-state equilibria; saddle path |
| JEL
classification:
C62; J24; O41 |
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