La Torre, Davide; Marsiglio, Simone; Privileggi, Fabio - Institute of Public Policy and Public Choice - POLIS - 2011
We study a stochastic, discrete-time, two-sector optimal growth model in which the production of the homogeneous consumption good uses a Cobb-Douglas technology, combining physical capital and an endogenously determined share of human capital. Education is intensive in human capital as in Lucas...