Macro Econ question

Part 3 (10 points): Suppose you are a policy advisor who is responsible for developing a national level long term public investment policy. Supposed you are asked to discuss the ef- fectiveness of investing on the efciency of the current production technology and investing on the public education. Based on the model of human capital accumulation in Chapter 8, discuss the key differences of these investment possibilities and explain which investment policy you would recommend and why. Discuss briey what additional aspects of the real world you would consider when making such a recommendation which may be missing in the model