Objective
Most studies on growth emphasize that increasing human capital is critical for explaining economic growth. There is a wide consensus that education plays a key role in creating human capital, and since the government is responsible for the majority of investments in education, one can relate the accumulation of human capital to government spending.
At the same time, given the limited amount of resources available to the government, many countries face important tradeoffs between education and investment in infrastructures. The aim of this research is twofold. First, we develop a model of economic growth to explore the possibility that government expenditure can enhance economic productivity in two alternative ways: raising the productivity of physical capital or by raising the productivity of human capital. An essential feature of our analysis is the introduction of government spending in the process of human capital accumulation, which is widely accepted but generally ignored. Second, we estimate the theoretical model developed in stage one.
The goal is to get an estimate for the returns on public and human capital, thus helping governments evaluate the impact of their policies. The issues raised by this research are central not only to the European debate of real convergence, but also to the debate on how to classify public investment in the context of the Stability and Growth Pact (SGP). In the first case, the European structural funds aim at co-financing a series of government programs concerning not only in vestment in infrastructures, but also human capital. In the second case there is the issue of the deficit constraints specified in the SGP. Therefore, it is relevant to provide a qualitative as well as a quantitative measure of the impact of both types of spending on the growth performance of the receiving economies.
Fields of science (EuroSciVoc)
CORDIS classifies projects with EuroSciVoc, a multilingual taxonomy of fields of science, through a semi-automatic process based on NLP techniques. See: The European Science Vocabulary.
CORDIS classifies projects with EuroSciVoc, a multilingual taxonomy of fields of science, through a semi-automatic process based on NLP techniques. See: The European Science Vocabulary.
- social sciences economics and business economics production economics productivity
- social sciences sociology governance taxation
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Programme(s)
Multi-annual funding programmes that define the EU’s priorities for research and innovation.
Multi-annual funding programmes that define the EU’s priorities for research and innovation.
Topic(s)
Calls for proposals are divided into topics. A topic defines a specific subject or area for which applicants can submit proposals. The description of a topic comprises its specific scope and the expected impact of the funded project.
Calls for proposals are divided into topics. A topic defines a specific subject or area for which applicants can submit proposals. The description of a topic comprises its specific scope and the expected impact of the funded project.
Call for proposal
Procedure for inviting applicants to submit project proposals, with the aim of receiving EU funding.
Procedure for inviting applicants to submit project proposals, with the aim of receiving EU funding.
FP6-2004-MOBILITY-12
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Funding Scheme
Funding scheme (or “Type of Action”) inside a programme with common features. It specifies: the scope of what is funded; the reimbursement rate; specific evaluation criteria to qualify for funding; and the use of simplified forms of costs like lump sums.
Funding scheme (or “Type of Action”) inside a programme with common features. It specifies: the scope of what is funded; the reimbursement rate; specific evaluation criteria to qualify for funding; and the use of simplified forms of costs like lump sums.
Coordinator
YORK
United Kingdom
The total costs incurred by this organisation to participate in the project, including direct and indirect costs. This amount is a subset of the overall project budget.