Public Knowledge, Individual Human Capital, and Private Wealth in a Generalized Dynamic Walrasian General

This study is concerned with dynamics of a generalized Walrasian equilibrium theory with endogenous public knowledge, individual human capital, and private wealth. The model is a synthesis of a few well-established economic theories with Zhang’s approach to modeling human behavior. It integrates the basic models in Walrasian general equilibrium theory, neoclassical growth theory, growth theory with endogenous human capital, and growth theory with endogenous knowledge. We build a model with J -group of households and three sectors. To describe motion of the economy is to solve 2 J  1 differential equations. We examine dynamic properties of the model of a 3-group economy with simulation. Comparative dynamic analysis is conducted to reveal transitory and long-term effects of some endogenous changes in policies, preferences, and efficiency of utilizing knowledge or human capital