This paper uses a two-country model with integrated markets for high-skilled labor to analyzethe opportunities and incentives for national governments to provide higher education.Countries can differ in productivity, and education is financed through a wage tax, so thatbrain drain affects the...

The theory of endogenous technical change has deeply contributed to our understanding ofthe fundamental sources of economic growth and development. In this chapter we surveyimportant contributions in the field by focussing on the basic structure of endogenous growthmodels with horizontal as well...