Human Capital and the Future of Transition Economies. / Spagat, M.

2003. (Human Capital).

Research output: Working paperDiscussion paper

Published
  • M Spagat

Abstract

Transition economies have an initial condition of high human capital relative to GDP per capita, giving them high growth potential. In the model, at a good equilibrium a large nuber of children of well-educated parents take advantage of their familybackgrounds and invest substantially in their own human capital. At a bad equilibrium, past educational achievements are wasted as children fail to build upon their parents' achievements. Policies and economic conditions can be decisive in determining the outcome. The model provides a basis for distinguishing development economics from transition economics.
Original languageEnglish
Publication statusPublished - 2 Oct 2003

Publication series

NameHuman Capital
This open access research output is licenced under a Creative Commons Attribution-NonCommercial-NoDerivs 3.0 Unported License.

ID: 887581