Availability Of Higher Education And Long-Term Economic Growth
AbstractThis paper examines the relationship between the availability of higher education and an economyfs long-term growth rate in a simple endogenous growth model with overlapping generations. Under certain conditions, an increased availability of higher education narrows the rate-of-return difference between human and physical capital investments. This reduces the share of income received by the younger generation, negatively affecting aggregate savings in subsequent periods, and thereby causing a substantial slowdown in the long-term growth rate. Such a paradoxical slowdown is endemic to developed economies, where higher education plays a central role in accumulating human capital. Although the recovery from such a slowdown entails a major restructuring of educational institutions, the authority may not take preventative measures against it, being dazzled by a temporary boom during its early stages.
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Bibliographic InfoArticle provided by Japanese Economic Association in its journal Japanese Economic Review.
Volume (Year): 59 (2008)
Issue (Month): 2 ()
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- Akiomi Kitagawa & Ryo Horii & Koichi Futagami, 2003. "Availability of Higher Education and Long-Term Economic Growth," Discussion Papers in Economics and Business 03-14, Osaka University, Graduate School of Economics and Osaka School of International Public Policy (OSIPP).
- Ryo Horii & Akiomi Kitagawa & Koichi Futagami, 2005. "Availability of Higher Education and Long-Term Economic Growth," Development and Comp Systems 0504005, EconWPA, revised 08 Sep 2005.
- Ryo Horii & Akiomi Kitagawa & Koichi Futagami, 2003. "Availability of Higher Education and Long-Term Economic Growth," Discussion Papers in Economics and Business 03-14-Rev, Osaka University, Graduate School of Economics and Osaka School of International Public Policy (OSIPP), revised Sep 2005.
- O41 - Economic Development, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - One, Two, and Multisector Growth Models
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