Abstract
This article intends to estimate the optimal value of investment and human capital in R&D sector of Iranian economy using an augmented endogenous growth model. To do so, two issues have been studied. First, an endogenous growth model has been extended to include investment in R&D as an independent ...
Read More
This article intends to estimate the optimal value of investment and human capital in R&D sector of Iranian economy using an augmented endogenous growth model. To do so, two issues have been studied. First, an endogenous growth model has been extended to include investment in R&D as an independent variable. In the framework of this model, in order to determine the optimal value of investment and human capital in R&D sector, we derived the optimal path. Second, using the optimal path and Iran’s economic data, the optimal values of human capital and investment in Iran’s R&D sector have been estimated. The results show that in order to be in a steady state with 8% economic growth, it’s necessary to allocate 0.7% of total human capital and 8% of national income to R&D sector. However, at present, less than 0.3% of human capital and less than 0.5% of national income is allocated to R&D sector in the Iranian economy.
Ali Hussein Samadi; Ali Hussein Ostadzad
Abstract
Abstract The main purpose of this paper is to obtain the optimal amount of expenses of government relating to the protection of property rights (PPRs). To achieve these purposes we have introduced concept of social intelligence with respect to PPRs and then developed different growth model from existing ...
Read More
Abstract The main purpose of this paper is to obtain the optimal amount of expenses of government relating to the protection of property rights (PPRs). To achieve these purposes we have introduced concept of social intelligence with respect to PPRs and then developed different growth model from existing literature. In the second step the optimal share of government spending on the PPRs is calculated. The theoretical results show inverse relationship between budget deficits and government spending in the PPRs. In other words, with increasing amount of government deficit, government reduced spending of PPRs. The results of calibration for Iranian economy show that, the growth rate of spending to PPRs should be equal to 31 percent for having sustainable economic growth rate of 6 percent.
