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Private And Public Education: Human Capital Accumulation Under Parental Teaching

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  • KOICHI FUTAGAMI
  • MITSUYOSHI YANAGIHARA

Abstract

This paper examines a simple overlapping generations model of human capital accumulation under both the public and private education regimes. Both young individuals and their parents allocate time to human capital accumulation. Under the public education regime, the government collects tax to finance expenditure for education resources. We show that there exists a level of tax which maximizes the speed of human capital accumulation because of parental teaching; and, if the government chooses tax rates adequately, human capital grows faster and welfare levels become higher under the public education regime than under the private.

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  • Koichi Futagami & Mitsuyoshi Yanagihara, 2008. "Private And Public Education: Human Capital Accumulation Under Parental Teaching," The Japanese Economic Review, Japanese Economic Association, vol. 59(3), pages 275-291, September.
    • Handle: RePEc:bla:jecrev:v:59:y:2008:i:3:p:275-291
    DOI: 10.1111/j.1468-5876.2008.00417.x
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    Cited by:

    1. Chu, Angus C. & Furukawa, Yuichi & Zhu, Dongming, 2016. "Growth and parental preference for education in China," Journal of Macroeconomics, Elsevier, vol. 49(C), pages 192-202.
    2. Hiroki Tanaka & Masaya Yasuoka, 2020. "Education Choice of Households and Income Inequality -Empirical Research of Mixed Public and Private Education Model-," Discussion Paper Series 216, School of Economics, Kwansei Gakuin University.

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