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This book tries to answer the question how, in a dynamic general equilibrium context, shocks to the capital market influence the rate of economic growth. As an example for such a shock, the effects of debt policy on a growing economy are analyzed. The rate of economic growth is explained endogenously by the effect of education on the efficiency of labor. If education is financed from savings, then there exist situations in which an increase in private investments may result in a lower growth rate of the economy. Within this framework, the book also deals with the current debate on the motives of saving and on the neutrality of debt policy.
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Human capital, endogenous growth, and government policy, Martin Husz
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- 1998
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