IDEAS home Printed from https://ideas.repec.org/p/lap/wpaper/047.html
   My bibliography  Save this paper

Universitary Financing and Welfare: A Dynamic Analysis with Heterogeneous Agents and Overlapping Generations

Author

Listed:
  • Juan M. Sánchez

Abstract

This paper develops a model in which it is possible to evaluate alternatives of human capital …nancing. The alternative systems under discussion are: total feeing; graduates taxes and uniform taxes (this can be associated to the scheme presently used in the Argentina universitary system). Assessment of the alternatives is performed over welfare, based on the indicators of poverty, equality, equity (justice in the distribution) and the average levels of utility and wealth. Likewise, the functions of welfare presented by Bentham, Rawls, Atkinson, Sen and Kakwani are also considered.The most remarkable results are obtained through the simulation of an economy under three scenarios. In that way, the system of graduates taxation is found to be better for welfare; whereas the system of uniform taxation only can be justi…ed as it maximises the number of students. In addition, an analysis of political economy in this model helps to understand why a system of uniform taxation can be sustainable on the time.

Suggested Citation

  • Juan M. Sánchez, 2003. "Universitary Financing and Welfare: A Dynamic Analysis with Heterogeneous Agents and Overlapping Generations," Department of Economics, Working Papers 047, Departamento de Economía, Facultad de Ciencias Económicas, Universidad Nacional de La Plata.
  • Handle: RePEc:lap:wpaper:047
    as

    Download full text from publisher

    File URL: https://www.depeco.econo.unlp.edu.ar/wp/wp-content/uploads/2017/05/doc47.pdf
    Download Restriction: no
    ---><---

    Other versions of this item:

    References listed on IDEAS

    as
    1. Foster, James & Greer, Joel & Thorbecke, Erik, 1984. "A Class of Decomposable Poverty Measures," Econometrica, Econometric Society, vol. 52(3), pages 761-766, May.
    2. Acemoglu, Daron, 2001. "Credit market imperfections and persistent unemployment," European Economic Review, Elsevier, vol. 45(4-6), pages 665-679, May.
    3. Huberto Ennis & Alberto Porto, 2001. "Igualdad de Oportunidades e Ingreso a la Universidad Pública en la Argentina," IIE, Working Papers 030, IIE, Universidad Nacional de La Plata.
    4. Leonardo Gasparini & Walter Sosa, 2001. "Assessing Aggregate Welfare: Growth and Inequality in Argentina," Latin American Journal of Economics-formerly Cuadernos de Economía, Instituto de Economía. Pontificia Universidad Católica de Chile., vol. 38(113), pages 49-71.
    5. Browning, Martin & Hansen, Lars Peter & Heckman, James J., 1999. "Micro data and general equilibrium models," Handbook of Macroeconomics, in: J. B. Taylor & M. Woodford (ed.), Handbook of Macroeconomics, edition 1, volume 1, chapter 8, pages 543-633, Elsevier.
    6. Caucutt, Elizabeth M. & Kumar, Krishna B., 2003. "Higher education subsidies and heterogeneity: a dynamic analysis," Journal of Economic Dynamics and Control, Elsevier, vol. 27(8), pages 1459-1502, June.
    7. Oded Galor & Joseph Zeira, 1993. "Income Distribution and Macroeconomics," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 60(1), pages 35-52.
    8. Maitreesh Ghatak & Massimo Morelli & Tomas Sjoström, 2001. "Credit rationing, wealth inequality, and allocation of talent," ICER Working Papers - Applied Mathematics Series 23-2001, ICER - International Centre for Economic Research.
    9. Christopher Phelan, 2002. "Inequality and fairness," Quarterly Review, Federal Reserve Bank of Minneapolis, vol. 26(Spr).
    10. Glomm, Gerhard & Ravikumar, B, 1992. "Public versus Private Investment in Human Capital Endogenous Growth and Income Inequality," Journal of Political Economy, University of Chicago Press, vol. 100(4), pages 818-834, August.
    11. Chen, Hung-ju, 2005. "Educational systems, growth and income distribution: a quantitative study," Journal of Development Economics, Elsevier, vol. 76(2), pages 325-353, April.
    12. Lucas, Robert Jr., 1988. "On the mechanics of economic development," Journal of Monetary Economics, Elsevier, vol. 22(1), pages 3-42, July.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Günther Rehme, 2007. "Education, Economic Growth and Measured Income Inequality," Economica, London School of Economics and Political Science, vol. 74(295), pages 493-514, August.
    2. Koichi Futagami & Mitsuyoshi Yanagihara, 2008. "Private And Public Education: Human Capital Accumulation Under Parental Teaching," The Japanese Economic Review, Japanese Economic Association, vol. 59(3), pages 275-291, September.
    3. Kirill Borissov & Stefano Bosi & Thai Ha-Huy & Leonor Modesto, 2017. "Heterogeneous Human Capital, Inequality and Growth: The Role of Patience and Skills," EUSP Department of Economics Working Paper Series 2017/03, European University at St. Petersburg, Department of Economics.
    4. Mejia, Daniel & St-Pierre, Marc, 2008. "Unequal opportunities and human capital formation," Journal of Development Economics, Elsevier, vol. 86(2), pages 395-413, June.
    5. Petra Sauer & Martin Zagler, 2014. "(In)equality in Education and Economic Development," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 60(S2), pages 353-379, November.
    6. Roland Benabou, 2002. "Tax and Education Policy in a Heterogeneous-Agent Economy: What Levels of Redistribution Maximize Growth and Efficiency?," Econometrica, Econometric Society, vol. 70(2), pages 481-517, March.
    7. Falilou Fall, 2005. "Endogenous persistent inequality," Université Paris1 Panthéon-Sorbonne (Post-Print and Working Papers) halshs-00196084, HAL.
    8. Matilde Isabela Angarita Serrano, 2021. "Entre becas y aulas: ¿Cómo cerramos la brecha?," Documentos CEDE 18901, Universidad de los Andes, Facultad de Economía, CEDE.
    9. Christopher B. Barrett & John G. McPeak, 2006. "Poverty Traps and Safety Nets," Economic Studies in Inequality, Social Exclusion, and Well-Being, in: Alain Janvry & Ravi Kanbur (ed.), Poverty, Inequality and Development, chapter 0, pages 131-154, Springer.
    10. Tahar Abdessalem, 2010. "Financing Higher Education in Tunisia," Working Papers 551, Economic Research Forum, revised 10 Jan 2010.
    11. Kanbur, Ravi, 2000. "Income distribution and development," Handbook of Income Distribution, in: A.B. Atkinson & F. Bourguignon (ed.), Handbook of Income Distribution, edition 1, volume 1, chapter 13, pages 791-841, Elsevier.
    12. Barrett, Christopher B. & Swallow, Brent M., 2006. "Fractal poverty traps," World Development, Elsevier, vol. 34(1), pages 1-15, January.
    13. Wei-Bin Zhang, 2016. "Impact of Education Subsidies and Taxation on Wealth and Human Capital Accumulation," Eastern European Business and Economics Journal, Eastern European Business and Economics Studies Centre, vol. 2(3), pages 222-247.
    14. Massimo Giannini, 1998. "Human Capital and Income Distribution Dynamics," GE, Growth, Math methods 9802004, University Library of Munich, Germany.
    15. Mark Gradstein & Moshe Justman, 1996. "The political economy of mixed public and private schooling: A dynamic analysis," International Tax and Public Finance, Springer;International Institute of Public Finance, vol. 3(3), pages 297-310, July.
    16. Rehme, Günther, 2002. "Education, Economic Growth and Personal Income Inequality Across (Rich) Countries," Publications of Darmstadt Technical University, Institute for Business Studies (BWL) 43476, Darmstadt Technical University, Department of Business Administration, Economics and Law, Institute for Business Studies (BWL).
    17. Elizabeth M. Caucutt & Lance Lochner, 2020. "Early and Late Human Capital Investments, Borrowing Constraints, and the Family," Journal of Political Economy, University of Chicago Press, vol. 128(3), pages 1065-1147.
    18. Viaene, J.-M. & Zilcha, I., 2001. "Human Capital Formation, Income Inequality and Growth," Papers 2001-13, Tel Aviv.
    19. Vincenzo Lombardo, 2008. "Income distribution and Growth: A Critical Survey," Working Papers 11_2008, D.E.S. (Department of Economic Studies), University of Naples "Parthenope", Italy.
    20. Tiago V. V. Cavalcanti & Chryssi Giannitsarou, 2017. "Growth and Human Capital: A Network Approach," Economic Journal, Royal Economic Society, vol. 127(603), pages 1279-1317, August.

    More about this item

    Keywords

    Human Capital; Welfare; Overlapping Generation.;
    All these keywords.

    JEL classification:

    • H1 - Public Economics - - Structure and Scope of Government
    • I2 - Health, Education, and Welfare - - Education
    • E62 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - Fiscal Policy; Modern Monetary Theory
    • O15 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:lap:wpaper:047. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Diego Fernandez Felices (email available below). General contact details of provider: https://edirc.repec.org/data/funlpar.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.