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Projects / Programmes source: ARIS

RESEARCH AND DEVELOPMENT, EDUCATION AND ECONOMIC GROWTH: A DYNAMIC GENERAL EQUILIBRIUM APPROACH WITH ENDOGENOUS GROWTH

Research activity

Code Science Field Subfield
5.02.00  Social sciences  Economics   

Code Science Field
S180  Social sciences  Economics, econometrics, economic theory, economic systems, economic policy 
Keywords
CGE, competitiveness, education, endogenous economic growth, general equilibrium modelling, MCP, research and development, Slovenia
Evaluation (rules)
source: COBISS
Researchers (4)
no. Code Name and surname Research area Role Period No. of publicationsNo. of publications
1.  19042  PhD Nataša Kump  Economics  Researcher  2008 - 2011  152 
2.  09110  PhD Boris Majcen  Economics  Head  2008 - 2011  484 
3.  21498  MSc Sonja Uršič  Economics  Researcher  2008 - 2011  108 
4.  24563  PhD Miroslav Verbič  Economics  Researcher  2008 - 2011  480 
Organisations (1)
no. Code Research organisation City Registration number No. of publicationsNo. of publications
1.  0502  Institute for Economic Research  Ljubljana  5051690000  2,490 
Abstract
Most present macroeconomic and microeconomic models do not incorporate endogenous growth mechanisms, which has led to criticism and thus development of ideas, which would allow for further development of the economic science in line with the endogenous growth mechanisms, identified in the economic literature. The purpose of the proposed research project is to construct and develop a general equilibrium model that will enable us to analyze the impact of education and research and development on economic growth in the context of complex mutual activity of economic agents and its outcomes. It is a dynamic general equilibrium model with endogenous growth, driven by education and research and development. Since there have been only a few attempts so far in the world to model endogenous growth in a general equilibrium framework in a consistent and integrated manner, the potential significance of the results of the proposed project is not just the extension and improvement of the methodological framework and the development of fundamental economic research per se, but might also lead to important original scientific findings in the fields of economic theory and practice. Namely, all the most current findings in the field of general equilibrium modelling and the newest methods in the field of mathematical economics are going to be used, e.g. constructing the general equilibrium as a mixed complementarity problem (MCP), use of calibrated share form, and solving the model by an advanced MCP solver in the framework of the general algebraic modelling system (GAMS). As such, our dynamic general equilibrium model will enable the analysis of long-term consequences of mutual policy measures in the field of education, research and development, taxation and social transfers, and is therefore a suitable tool for long-term monitoring of consequences of economic policy for households, firms and the government budget. Thus the model will be suitable to fulfil the requirements of quantification of effects of investments into education and research and development on long-term growth of the Slovenian economy in the context of the Slovenian Development Strategy, socioeconomic reforms and the knowledge-based society. Scientific findings are therefore very likely to raise significant responses domestically and internationally; not only in the academia but also in the applied fields of policy analysis and research.
Significance for science
Since there have been only a few attempts so far in the world to model endogenous growth in a general equilibrium framework in a consistent and integrated manner, the significance of the results of the proposed project is not just the extension and improvement of the methodological framework and the development of fundamental economic research per se, but have also led to original scientific findings in the fields of economic theory and practice. Namely, the majority of the most current findings in the field of general equilibrium modelling and the newest methods in the field of mathematical economics were used, e.g. constructing the general equilibrium as a mixed complementarity problem (MCP), use of calibrated share form, and solving the model by an advanced MCP solver in the framework of the general algebraic modelling system (GAMS). Scientific findings are therefore very likely to raise significant responses domestically and internationally; not only in the academia but also in the applied fields of policy analysis and research.
Significance for the country
The research project enables access to foreign knowledge in the field of economic modelling and at the same time contributes to the international stock of knowledge. Namely, the scientific findings are very likely to raise significant responses in the academia domestically and internationally. As such, the research project enables the promotion of Slovenian science and the State of Slovenia per se. The research project is especially important for the education sector and R&D sector, since it enables the economic analysis of investments to these sectors. At the same time it is important for the whole economy, as it allows the economic analysis of outcomes of such investments for competitiveness of the Slovenian economy.
Most important scientific results Final report, complete report on dLib.si
Most important socioeconomically and culturally relevant results Annual report 2008, 2009, final report, complete report on dLib.si
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