Human Capital Accumulation and Endogenous

This paper develops an endogenous growth model of a dual economy where human capital accumulation is the source of economic growth. The dualism between the rich individuals and the poor individuals exists in the mechanism of human capital accumulation. Rich individuals allocate labour time not only for their own production and knowledge accumulation but also to train the poor individuals. Steady-state growth paths are studied for Market Economy (Decentralised Economy) and Command Economy. Optimal tax policy that helps to achieve steady-state growth rate of command economy through market economy is also derived