Federalism, Education-Related Public Good and Growth when Agents are Heterogeneou
AbstractIn this paper we use an endogeneous-growth model with human capital and heterogeneous agents to analyse the relationship between fiscal federalism and economic growth. Results show that federalism, which allows education-related public good levels to be tailored on the human capital of heterogeneous agents, increases human capital accumulation. This in turn leads to higher rates of growth. The benefits of federalism are stronger the larger the intra-jurisdiction variance of agents’ human capital.
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Bibliographic InfoPaper provided by University of Milano-Bicocca, Department of Economics in its series Working Papers with number 138.
Length: 18 pages
Date of creation: May 2008
Date of revision: May 2008
Fiscal Federalism; Endogenous Economic Growth; Overlapping Generations; Heterogeneous Agents;
Find related papers by JEL classification:
- H77 - Public Economics - - State and Local Government; Intergovernmental Relations - - - Intergovernmental Relations; Federalism
- J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
- 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-2008-07-20 (All new papers)
- NEP-DGE-2008-07-20 (Dynamic General Equilibrium)
- NEP-HRM-2008-07-20 (Human Capital & Human Resource Management)
- NEP-PBE-2008-07-20 (Public Economics)
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