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Human capital accumulation and endogenous public expenditures

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  • Gerhard Glomm
  • B. Ravikumar

Abstract

In this paper, we present an overlapping-generations model, where individuals accumulate human capital through formal schooling. We model the role of the public sector in schooling as one of collecting taxes from households and providing inputs to the learning technology. Public expenditures on schools are determined endogenously. Under plausible restrictions, our model's predictions qualitatively match the observations on schooling, public expenditures on education, and student-teacher ratios.

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Bibliographic Info

Article provided by Canadian Economics Association in its journal Canadian Journal of Economics.

Volume (Year): 34 (2001)
Issue (Month): 3 (August)
Pages: 807-826

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Handle: RePEc:cje:issued:v:34:y:2001:i:3:p:807-826

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