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Investment efficiency and intergenerational income distribution: a paradoxical result

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Author Info
Ryo Horii () (Osaka University)
Koichi Futagami () (Osaka University)
Akiomi Kitagawa () (Tohoku University)

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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.

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File URL: http://www.accessecon.com/pubs/EB/2004/Volume15/EB-04O40005A.pdf
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Publisher Info
Article provided by AccessEcon in its journal Economics Bulletin.

Volume (Year): 15 (2004)
Issue (Month): 2 ()
Pages: 1-6
Download reference. The following formats are available: HTML (with abstract), plain text (with abstract), BibTeX, RIS (EndNote, RefMan, ProCite), ReDIF
Handle: RePEc:ebl:ecbull:v:15:y:2004:i:2:p:1-6

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Related research
Keywords: human capital;

Find related papers by JEL classification:
O4 - Economic Development, Technological Change, and Growth - - Economic Growth and Aggregate Productivity

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