Intergenerational Complementarities in Education and the Relationship between Growth and Volatility
AbstractWe construct an overlapping generations model in which parents vote on the tax rate that determines publicly provided education and offspring choose their effort in learning activities. The technology governing the accumulation of human capital allows these decisions to be strategic complements. In the presence of coordination failure, indeterminacy and, possibly, growth cycles emerge. In the absence of coordination failure, the economy moves along a uniquely determined balanced growth path. We argue that such structural differences can account for the negative correlation between volatility and growth.
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Bibliographic InfoPaper provided by Department of Economics, University of Leicester in its series Discussion Papers in Economics with number 09/8.
Date of creation: Mar 2009
Date of revision:
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Other versions of this item:
- Theodore Palivos & Dimitrios Varvarigos, 2009. "Intergenerational Complementarities in Education and the Relationship between Growth and Volatility," Discussion Paper Series 2009_05, Department of Economics, University of Macedonia, revised Mar 2009.
- O41 - Economic Development, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - One, Two, and Multisector Growth Models
This paper has been announced in the following NEP Reports:
- NEP-ALL-2009-03-28 (All new papers)
- NEP-DGE-2009-03-28 (Dynamic General Equilibrium)
- NEP-FDG-2009-03-28 (Financial Development & Growth)
- NEP-HRM-2009-03-28 (Human Capital & Human Resource Management)
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
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- Theodore Palivos & Dimitrios Varvarigos, 2009.
"Education and Growth: A Simple Model with Complicated Dynamics,"
Discussion Paper Series
2009_08, Department of Economics, University of Macedonia, revised Apr 2009.
- Theodore Palivos & Dimitrios Varvarigos, 2010. "Education and growth: A simple model with complicated dynamics," International Journal of Economic Theory, The International Society for Economic Theory, vol. 6(4), pages 367-384.
- Palivos, Theodore & Varvarigos, Dimitrios, 2011.
"Intergenerational complementarities in education, endogenous public policy, and the relation between growth and volatility,"
31343, University Library of Munich, Germany.
- Theodore Palivos & Dimitrios Varvarigos, 2013. "Intergenerational Complementarities in Education, Endogenous Public Policy, and the Relation Between Growth and Volatility," Journal of Public Economic Theory, Association for Public Economic Theory, vol. 15(2), pages 249-272, 04.
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