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K. Prettner:
"Public education and economic prosperity: semi-endogenous growth revisited";
Report for TU Wien, Working Papers in Economic Theory and Policy; Report No. Working Paper No. 02, 2012; 30 pages.

We introduce publicly funded education into R&D-based economic
growth theory. Our framework allows us to i) explicitly describe a
realistic process of human capital accumulation within these types of
growth models, ii) reconcile semi-endogenous growth theory with the
empirical evidence on the relationship between economic development
and population growth, and iii) revise the policy invariance result of
semi-endogenous growth frameworks. In particular, we show that the
model supports a negative association between economic growth and
population growth if the education sector is well developed and the
population growth rate is low, that is, for modern industrialized countries.
Furthermore, within our framework, changes in public educational
investments have the potential to affect the long-run balanced
growth rate.

public education, human capital accumulation, technological