The core of the neoclassical growth theory is the capital investment. Solow proposed that the diminishing return is key to such growth process in establishing the stability of the equilibrium growth path. This key postulation has critical implications on the sustainable and effective development...

This paper develops a dynamic general equilibrium model that tries to reconcile the observation that aggregate movements of exports and imports are "disconnected" from real exchange rate movements, while firm-level exports co-move significantly with the real exchange rate. Firms are...

The Thai Socio-Economic Survey suggests that new labor market entrants increasingly enter activities with high and positive productivity growth (modern sector), but continue to enter activities with low productivity growth (traditional sector). Workers appear to stick to their initial choice of...

We identify a key role of factor supply, driven by demographic changes, in shaping several empirical regularities that are a focus of active research in macro and labor economics. In particular, the large movements of the return to experience over the last four decades are almost perfectly...

This paper estimates Korea's age-skill profiles in comparison with other OECD countries such as Japan, Germany, USA, UK and Finland, using the PIAAC data, the recent skill competence survey of adult workers from OECD countries. According to this survey, Korean worker's skill level is slightly...

This paper proposes a new conceptual framework of “education bubble” in analyzing the human capital investment and formation. We apply this concept to the Korean experience. Sixty years ago Korea was destitute not only of income but also of all sorts of education, but now it is one of the...