Human Capital Accumulation in R&D-based Growth Models

This paper considers a multi-sectoral endogenous growth model, that reproduces the essential aspects of an “ICT-based economy”, in which a central role is played by human capital accumulation. Indeed, households also invest in human capital through schooling, and this turns out to be the true engine of growth. Furthermore, this model displays no scale effect and the simulations allow to get interesting results concerning the link between market power and growth, the presence of “imbalance effects” and the consequences of different types of subsidies.