Availability of Higher Education and Long-Term Economic Growth
AbstractThis paper examines the economic growth effects of limited availability of higher education in a simple endogenous growth model with overlapping generations. With limited availability, the scarcity of human capital keeps its price high and distributes a larger share of the aggregate output to young households. Under certain conditions, it leads to greater aggregate savings in each period, thereby enabling the economy to grow faster than without any limitation. In such cases, an excessive expansion in the availability causes a temporary boom followed by a serious deficiency in investible funds, resulting in a substantial slowdown in economic growth.
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Bibliographic InfoPaper provided by EconWPA in its series Development and Comp Systems with number 0504005.
Length: 37 pages
Date of creation: 12 Apr 2005
Date of revision: 08 Sep 2005
Note: Type of Document - pdf; pages: 37
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Endogenous Growth; Human Capital; Slowdown; Intergenerational Income Distribution;
Other versions of this item:
- Ryo Horii & Akiomi Kitagawa & Koichi Futagami, 2008. "Availability Of Higher Education And Long-Term Economic Growth," The Japanese Economic Review, Japanese Economic Association, vol. 59(2), pages 156-177.
- Ryo Horii & Akiomi Kitagawa & Koichi Futagami, 2003. "Availability of Higher Education and Long-Term Economic Growth," Discussion Papers in Economics and Business 03-14-Rev, Osaka University, Graduate School of Economics and Osaka School of International Public Policy (OSIPP), revised Sep 2005.
- Akiomi Kitagawa & Ryo Horii & Koichi Futagami, 2003. "Availability of Higher Education and Long-Term Economic Growth," Discussion Papers in Economics and Business 03-14, Osaka University, Graduate School of Economics and Osaka School of International Public Policy (OSIPP).
- 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-2005-04-16 (All new papers)
- NEP-DEV-2005-04-16 (Development)
- NEP-DGE-2005-04-16 (Dynamic General Equilibrium)
- NEP-EDU-2005-04-16 (Education)
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