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MRW Model of growth: foundation, developments and empirical evidence

The paper focuses on the neoclassical model of growth with human capital developed by Mankiw, Romer and Weil (1992) as one of the most widely used theoretical model and estimation tool in the studies which examine the sources of economic growth. A mathematical description of both the steady state and the short-run dynamics is presented. Additionally, key contributions to the model in relation to structural changes or econometric modifications have been discussed.