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Oxford Economic Papers 2000; 52:670-676
Copyright © 2000 Oxford Universty Press

Article

Human capital: level versus growth effects

E Cannon

University of Bristol, Department of Economics, 8, Woodland Road, Bristol WS8 1TN, UK
E-mail: Edmund.Cannon@bristol.ac.uk

Abstract

The endogenous growth literature includes two competing views concerning the influence of human capital on output growth: human capital may be a conventional input and determine just the level of output or it may be essential to raise productivity via R&D. Distinguishing empirically between these two alternatives is important. This paper shows that the suggestion by Aghion and Howitt (1998) for how to distinguish the two approaches will not work.


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