A Revision to the Theory and the Practice of Development Accounting
Practitioners of development accounting assume that the private return on schooling equals its social marginal product. I show that this assumption is inconsistent with the mathematical structure of a multiplicative production function, which specifies that the private return is only a fraction of t...
- Autores:
-
Theodore, R. Breton
- Tipo de recurso:
- Fecha de publicación:
- 2014
- Institución:
- Universidad EAFIT
- Repositorio:
- Repositorio EAFIT
- Idioma:
- eng
- OAI Identifier:
- oai:repository.eafit.edu.co:10784/1407
- Acceso en línea:
- http://hdl.handle.net/10784/1407
- Palabra clave:
- Development accounting
Human capital
Physical Capital
Productivity
Contabilidad del desarrollo
Capital humano
Capital físico
Productividad
- Rights
- License
- Acceso abierto
| Summary: | Practitioners of development accounting assume that the private return on schooling equals its social marginal product. I show that this assumption is inconsistent with the mathematical structure of a multiplicative production function, which specifies that the private return is only a fraction of the social marginal product. I then show that the empirical results from development accounting in the literature substantially underestimate human capital’s contribution to national output and overestimate national productivity differences. |
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