Steady Economic Growth: The Cobb-Douglas Case with “Engineering-School” Human Capital
This study is concerned with growth and economic development in a population of boundedly rational learner/investors. The objective is to establish the “constructive sufficiency” of the model to produce behavior like that observed in real economic growth processes, particularly dichotomization. We have seen that dichotomization can be observed, as a long-lasting transient, even in a stationary-state model in which a transient period of economic growth occurs as a result of learning better resource allocation rules. In the next chapter, we will explore parallel simulations of a steady-growth economy. Subsequent chapters will explore some variants.
KeywordsHuman Capital Capital Stock Physical Capital Human Capital Formation Potential Labor
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