The Political Economy of Human Capital Accumulation ¤

@inproceedings{Pineda1999ThePE,
  title={The Political Economy of Human Capital Accumulation ¤},
  author={Jose Pineda and Francisco Gil Rodriguez},
  year={1999}
}
Investment in human capital accumulation, government consumption and total government expenditures present a striking negative correlation with capital shares. This correlation is robust to alternative speci...cations, lists of controls, and exclusion of outliers. Causality tests strongly support the hypothesis that the direction of causation runs from capital shares to the government spending variables. We present a political economy model of interest groups that can account for these… CONTINUE READING

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