Learning-by-doing in two sectors, production structure, leisure and optimal endogenous growth

Matthias Göcke

A model with two different production sectors and endogenous growth based on the accumulation of sector-specific human capital due to learning-by-doing is presented. Accumulation of experience is measured by means of sectoral production output aggregated over time. Growth is controlled by a dynamic optimisation of the use of time for working in the different sectors or for leisure. Transitional dynamics of production growth, especially of structural change towards a "new" sector (with relatively scarce experience), of the optimal sectoral distribution of working time and of leisure as well as the corresponding steady state levels are derived and a numerical simulation is performed.

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Year of publication:	2011
Authors:	Göcke, Matthias
Publisher:	Marburg : Univ., Dep. of Business Administration & Economics
Subject:	Endogenes Wachstumsmodell \| Endogenous growth model \| Mehrsektoren-Modell \| Multisectoral model \| Humankapital \| Human capital \| Lernprozess \| Learning process \| Arbeitszeit \| Working time \| Freizeit \| Leisure \| Zeitverwendung \| Time use \| Theorie \| Theory