Stabilization Policy, Growth and Learning by Doing - Sciences Po Access content directly
Journal Articles Oxford Economic Papers Year : 1997

Stabilization Policy, Growth and Learning by Doing


This paper shows that fiscal policy, when used for stabilization purposes, can have a positive effect on the economy's growth, on human capital accumulation, and on welfare. We introduce stochastic productivity shocks into a model in which productivity is augmented through learning-by-doing If future benefits of learning-by-doing are not fully internalized by workers, then recessions are periods in which opportunities for acquiring experience are foregone. We identify configurations of disturbances and other parameters for which a countercyclical policy maximizes growth and welfare.
No file

Dates and versions

hal-03416319 , version 1 (05-11-2021)


  • HAL Id : hal-03416319 , version 1
  • SCIENCESPO : 2441/9307


Carol Ann Rogers, Philippe Martin. Stabilization Policy, Growth and Learning by Doing. Oxford Economic Papers, 1997, 49 (2), pp.152 - 166. ⟨hal-03416319⟩
4 View
0 Download


Gmail Facebook X LinkedIn More