Human Capital Accumulation and Public Sector Growth /

The present paper takes a fresh theoretical and empirical look into the relationship between Wagner's law and economic development. It introduces human capital into a classic two-sector model of unbalanced growth. It shows that, as an economy develops, changes in the relative returns to human c...

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Autor principal: Tanzi, Vito
Altres autors: Zee, Howell
Format: Revista
Idioma:English
Publicat: Washington, D.C. : International Monetary Fund, 1995.
Col·lecció:IMF Working Papers; Working Paper ; No. 1995/095
Accés en línia:Full text available on IMF
Descripció
Sumari:The present paper takes a fresh theoretical and empirical look into the relationship between Wagner's law and economic development. It introduces human capital into a classic two-sector model of unbalanced growth. It shows that, as an economy develops, changes in the relative returns to human capital and unskilled labor, as a result of changes to their relative scarcities, could have a significant impact on the size of the government sector, depending in part also on the difference in relative factor intensities between outputs of the private and government sectors. This conjecture is broadly supported by empirical evidence based on a cross-section analysis of a large sample of developed and developing countries.
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Descripció física:1 online resource (14 pages)
Format:Mode of access: Internet
ISSN:1018-5941
Accés:Electronic access restricted to authorized BRAC University faculty, staff and students