A Model of Optimal Allocations of Physical Capital and Human Capital in Three Sectors

摘要

The paper develops an endogenous economic growth model about allcation of physical and human capital in three sectors. Optimal allocation of physical capital and human capital in three sectors is derived, the fraction of physical and human capital ineach sector is positively related. The balanced values and the growth rates at steady state are given under certain conditions. Finally relations between the fractions of human capital and parameters are analyzed elaborately.