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The role of technological progress has been included in the production function as a determinant of the growth by that is devoted a model of longrun growth to include the price-wage-interest reactions, interest-elastic savings schedule and allowed for the neutral technological change. Extend the Solow model to include the human capital accumulation through years of schooling in the production function. Closely following the work of Solow, Lucas examined the interaction of physical and human capital accumulation on growth.
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