The empirics of economic growth 409 finally, we discuss the predictions of the solow model for. This paper writes down two versions of the solow growth model, derives testable predictions from the model, and tests those predictions using crosscountry data. The reasoning behind the theoretical work is that technological ideas cannot be fully appropriated by investors and these ideas may diffuse and increase the productivity of other firms. In brief, mankiw, romer, and weil 1992, henceforth mrw, performed an empirical evaluation of a. Critiques to mankiw, romer, weil 1992 paper on economic. Im searching for bibliography on the critiques to the mankiw, romer, weil 1992 paper. Alwyn young 1994, 1995 finds that the east asian growth mira. A contribution to the empirics of economic growth nber. In a seminal paper, mankiw, romer, and weil 1992 hereafter mrw revived the canonical.
The marginal product of human capital in mankiw, romer, and weils 1992 augmented solow model measures the direct and two external effects of human capital created from. I f technological change en hances productivity by 2. In their influential work on the augmented solow model, mankiw, romer and weil 1992 showed that crosssection evidence was reasonably consistent with the solow growth model augmented to include. Solow 1956 growth model, which had come under increasing. This paper presents a simple model of human capital, ideas, and economic growth that integrates contributions from several di erent strands of the growth literature.
It is well known that the solow approach overstates understates the contribution of capital accumulation technological progress to economic growth and that the mankiwromerweil approach addresses this issue. A contribution to the empirics of economic growth, the quarterly journal of economics, oxford university press, vol. Thus begins one of the most influential and widely cited pieces in the empirical growth literature, a 1992 article by n. An extension to the neoclassical growth modelto estimate. Weil this paper examines whether the solow growth model is consistent with the international variation in the standard of living. Presentation mode open print download current view. Olivier blanchard, anne case, lawrence katz, robert king, paul romer, xavier salaimartin, amy salsbury, robert solow, lawrence summers, peter temin, and the referees for helpful comments, and to the national science foundation for financial support.
We link the diffusion of ideas to spatial proximity and allow for ideas. It shows that an augmented solow model that includes accumulation of human as well as physical capital provides an excellent description of the crosscountry data. A contribution to the empirics of economic growth n. This paper presents an openeconomy extension of the mankiwromerweil henceforth mrw model see mankiw et al. The data are presented in excel, stata, and text file formats. In the long run, equality of returns seems reasonable. If possible, could you give references to each critique. The model generates a regression specification that is very similar to that employed by mankiw, romer and weil 1992, but the economics underlying the. Y khal1al where y is output, k is physical capital, h is human capital, a is the level of technology, and l is labor. Contribution to the empirics of economic growth the quarterly. Olivier blanchard, anne case, lawrence katz, robert king, paul romer, xavier. The paper argues that the solow growth model, once augmented to include a role for human capital, does a reasonably good job of explaining international. This paper presents a theoretical growth model that accounts for technological interdependence among regions in a mankiwromerweil world. It shows that an augmented solow model that includes accumulation of human as well as physical capital provides.
Weil this paper examines whether the solow growth model is consistent with the. This pdf is a selection from a published volume from. Introduction this paper takes robert solow seriously. Mankiw, romer and weil 1992, qje mankiw, romer and weil 1992, qje mankiw, romer and weil 1992, qje. The quarterly journal of economics, volume 107, issue 2, may 1992, pages 407437, published. Contribution to the empirics of economic growth the. It may be helpful to state this point in units of time. In their 1992 paper entitled a contribution to the empirics of economic growth, mankiw, romer and weil intend to show that, despite its shortcomings, the solow model is a satisfactory enough framework for growth analysis. Based on mankiw romer and weil 1992 with conditional. In brief, mankiw, romer, and weil 1992, henceforth mrw, performed an empirical evaluation of a textbook solow 1956 growth model using the penn world tables, a multicountry data set constructed by summers and heston 1988 for the years 19601985. Mankiw, romer, and weil 1992 estimate that the solow model augmented to include human capi tal can explain 78% of the crosscountry variance of output per capita in 1985.
In the data the effects of saving and population growth on income are. For example, mankiw, romer and weil 1992, barro and salaimartin 1992 and evans 1996 showed, using data from the second half of the 20th century, that most countries seem to be converging to roughly similar longrun growth rates, whereas endogenous. Mankiws most widely cited paper is a contribution to the empirics of economic growth, coauthored with david romer and david weil and published in the quarterly journal of economics in 1992. In brief, mankiw, romer, and weil 1992, henceforth mrw. Human capital, ideas, and economic growth stanford university. This study explores growth accounting under endogenous technological progress. Introduction i n a seminal paper, man kiw, romer, and weil 1992 hereafter mrw revived the canonical solow 1956 growth model, which had come under increasing challenge from the development of the new endogenous growth models. Notes on mankiw, romer and weil allin cottrell, september 2003 heres an exegesis of section i of the paper by mankiw, romer and weil mrw. This is the first part of the replica of mankiw, romer and weil 1992 paper on the empirics of economic growth.
Notes on mankiw, romer and weil wake forest university. A contribution to the empirics of economic growth mankiw, romer and weil 1992 abstract. Critiques to mankiw, romer, weil 1992 paper on economic growth. We may simply show how mrws expression for the steadystate. But the ability to substitute freely between h and k is perhaps not always plausible. The quarterly journal of economics 107 2, 407437, 1992. This paper presents an openeconomy extension of the mankiwromerweil. This paper estimates national stocks of human capital in 1990 created from prior investment in schooling and shows that. First, the level of technology is considered as given and, thus, exogenously determined. Their combined citations are counted only for the first article. If you can get a good understanding of this section, the rest of the paper should be fairly easy.
Population studies and training center pstc collection. This is the third part of the replica of mankiw, romer and weil 1992 paper on the empirics of economic growth. This paper examines whether the solow growth model is consistent with the international variation in the standard of living. The growth of nations averageincomes in the worlds richest countries are more than ten times as high as in the worlds poorest countries. In mankiw, romer, and weils augmented solow model quarterly journal of economics 107 2 407437 1992, the marginal product of human capital accrues to three factors of production. Spatial externalities and growth in a mankiwromerweil. This pdf is a selection from a published volume from the national bureau of. Terence huw edwards loughborough university abstract mankiw, romer and weil 1992 found that, by adding a measure of school enrolment to capital and labour, a crosscountry regression displays income convergence.