Introduction to Modern Economic Growth 9.9 Taking Stock 9.10 References and Literature 9.11 Exercises 453 455 456 Chapter 10.1 10.2 10.3 10.4 10.5 10.6 10.7 10.8 10.9 10.10 10.11 10 Human Capital and Economic Growth 463 A Simple Separation Theorem 463 Schooling Investments and Returns to Education 466 The Ben Porath Model 469 Neoclassical Growth with Physical and Human Capital 474 Capital-Skill Complementarity in an Overlapping Generations Model 480 Physical and Human Capital with Imperfect Labor Markets 485 Human Capital Externalities 492 Nelson-Phelps Model of Human Capital 495 Taking Stock 498 References and Literature 500 Exercises 502 Chapter 11.1 11.2 11.3 11.4 11.5 11.6 11.7 11 First-Generation Models of Endogenous Growth The AK Model Revisited The AK Model with Physical and Human Capital The Two-Sector AK Model Growth with Externalities Taking Stock References and Literature Exercises Part Endogenous Technological Change 505 506 513 516 521 526 528 529 535 Chapter 12.1 12.2 12.3 12.4 12.5 12.6 12.7 12.8 12 Modeling Technological Change Different Conceptions of Technology Science, Profits and the Market Size The Value of Innovation in Partial Equilibrium The Dixit-Stiglitz Model and “Aggregate Demand Externalities” Individual R&D Uncertainty and the Stock Market Taking Stock References and Literature Exercises 537 537 542 545 555 562 564 565 567 Chapter 13.1 13.2 13.3 13.4 13 Expanding Variety Models The Lab Equipment Model of Growth with Product Varieties Growth with Knowledge Spillovers Growth without Scale Effects Growth with Expanding Product Varieties vi 571 572 586 589 593