Dynamics in a non-scale R&D growth model with human capital: Explaining the Japanese and South Korean development experiences

A unified theory of structural change

“…This paper uses dynamic general equilibrium and computational methods that we first discovered as junior assistant professors studying Turnovsky's book and extends our earlier work (Papageorgiou and Perez-Sebastian, 2004;2006; inspired by the multi-sector growth model structure in Turnovsky's previous and more recent work. More specifically, the goal of this paper is to construct a model that can unify two of the traditional explanations of the structural transformation; namely sectorbiased technical change pioneered by Ngai and Pissarides (2007), and non-homothetic preferences pioneered by Konsamut et al (2001).…”

Do innovation dimensions matter in China’s cross-regional income differences?

“…Why is the stock of highly educated students or R&D manpower so important? The answer can be found in Papageorgiou and Perez-Sebastian (2006) who use the cases of South Korea and Japan as examples of "development miracles" to argue that while Japanese growth over 1963-1987 mainly stemmed from faster physical capital accumulation, South Korea derived its faster pace of economic development from higher human capital accumulation. They suggest that R&D becomes more productive with the growth of average schooling as a higher human capital level enables workers to efficiently use ideas and fosters technology acquisition.…”

Infrastructure and Growth

“…The possibility of diminishing returns is considered in a recent study conducted by Papageorgiou and Perez-Sebastian (2006). The authors build an R&D non-scale growth model that includes endogenous human capital and technological progress.…”

“…The model economy of Papageorgiou and Perez-Sebastian (2006) consists of identical infinitely-lived individuals, and grows exogenously at rate n. Individuals in the economy can produce consumer goods, pursue education and conduct R&D.…”