Human Capital Formation in Argentina: Contribution to gross domestic product

Trelew (Chubut)

Congreso; 47 Reunión Anual de la Asociación Argentina de Economía Política; 2012

Universidad Nacional de la Patagonia San Juan Bosco

Economists were always intrigued by the relationship between human capital and the product growth rate, as shown by contributions by Uzawa-Lucas and Mankiw et al. In order to assess policy implications of the matter, the Augmented Solow Model was estimated by resorting to cointegration and error correction models, using in turn a new methodology to computing the human capital variable (investment in education) including also opportunity costs. Even though estimations revealed the existence of long run equilibrium relationships, evidences were not obtained of human capital significantly enhancing product in Argentina; this outcome was also anticipated by the analyzed stylized facts.