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Investment efficiency and intergenerational income distribution: a paradoxical result

Author

Listed:
  • Ryo Horii

    (Osaka University)

  • Koichi Futagami

    (Osaka University)

  • Akiomi Kitagawa

    (Tohoku University)

Abstract

Using a simple overlapping generations model, this note shows that an improvement in the efficiency of human capital investment decreases the net income of the young household while increasing that of the old. Without compensating redistribution, it deteriorates lifetime utilities of all generations except for the initial old households.

Suggested Citation

  • Ryo Horii & Koichi Futagami & Akiomi Kitagawa, 2004. "Investment efficiency and intergenerational income distribution: a paradoxical result," Economics Bulletin, AccessEcon, vol. 15(2), pages 1-6.
    • Handle: RePEc:ebl:ecbull:eb-04o40005
    as

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    References listed on IDEAS

    as
    1. Basu, Kaushik & Van, Pham Hoang, 1998. "The Economics of Child Labor," American Economic Review, American Economic Association, vol. 88(3), pages 412-427, June.
    2. Ryo Horii & Akiomi Kitagawa & Koichi Futagami, 2008. "Availability Of Higher Education And Long‐Term Economic Growth," The Japanese Economic Review, Japanese Economic Association, vol. 59(2), pages 156-177, June.
    3. Lucas, Robert Jr., 1988. "On the mechanics of economic development," Journal of Monetary Economics, Elsevier, vol. 22(1), pages 3-42, July.
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    More about this item

    Keywords

    human capital;

    JEL classification:

    • O4 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity

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