Education Subsidies and Endogenous Growth : Implications of Demographic Shocks
AbstractIn this paper we develop a three-period overlapping generations model in which individual decisions about education are the engine of growth. In this setting, it is first shown that an education subsidy combined with a hunJrsum redistribution from adults to retirees makes it possible to reach the optimum in a market context. Then we examine how these transfers should be adjusted in the presence of unexpected natality shocks. Especially, in the case of a " baby boom-baby bust" shock, the sharing of the shock burden requires increased transfers to retirees when the share of elderlies peaks.
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Bibliographic InfoPaper provided by Université catholique de Louvain, Center for Operations Research and Econometrics (CORE) in its series CORE Discussion Papers with number 1994052.
Date of creation: 01 Oct 1994
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Find related papers by JEL classification:
- J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
- E62 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - Fiscal Policy
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- DE LA CROIX, David & MICHEL, Philippe, .
"Education and growth with endogenous debt constraints,"
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- David Croix & Philippe Michel, 2007. "Education and growth with endogenous debt constraints," Economic Theory, Springer, vol. 33(3), pages 509-530, December.
- DE LA CROIX, David & MICHEL, Philippe, 2004. "Education and growth with endogenous debt constraints," CORE Discussion Papers 2004074, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
- David, DE LA CROIX, 2004. "Education and Growth with Endogenous Debt Constraints," Discussion Papers (IRES - Institut de Recherches Economiques et Sociales) 2004020, Université catholique de Louvain, Institut de Recherches Economiques et Sociales (IRES).
- DOCQUIER, Frédéric & PADDISON, Oliver, 2000. "Growth and equality effects of pension plans," CORE Discussion Papers 2000036, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
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