Optimal Education with Mobile Capital. An OLG Approach (new title: Optimal Public Education under Capital Mobility)
AbstractThe paper considers a two-country model of overlapping generations economies with intergenerational transfers carried out in the form of bequest and investment in human capital. We examine in competitive equilibrium the optimal provision of education with and without capital markets integration. First, we explore how regimes of education provision - public, private or mixed - arise and how they affect the dynamics of autarkic economies. Second, we study the transitory and long-run effects of capital markets integration, in equilibrium, on the optimal provision of education and growth. Third, we examine a competition game where countries compete in the provision of public education.
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Bibliographic InfoPaper provided by CESifo Group Munich in its series CESifo Working Paper Series with number 289.
Date of creation: 2000
Date of revision:
Altruism; education; growth; human capital; capital markets integration;
Find related papers by JEL classification:
- D90 - Microeconomics - - Intertemporal Choice and Growth - - - General
- E20 - Macroeconomics and Monetary Economics - - Macroeconomics: Consumption, Saving, Production, Employment, and Investment - - - General (includes Measurement and Data)
- F20 - International Economics - - International Factor Movements and International Business - - - General
- J20 - Labor and Demographic Economics - - Demand and Supply of Labor - - - General
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