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Availability of Higher Education and Long-Term Economic Growth

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Author Info

  • Ryo Horii

    (Osaka University)

  • Akiomi Kitagawa

    (Tohoku University)

  • Koichi Futagami

    (Osaka University)

Abstract

This 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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File URL: http://128.118.178.162/eps/dev/papers/0504/0504005.pdf
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Bibliographic Info

Paper provided by EconWPA in its series Development and Comp Systems with number 0504005.

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Length: 37 pages
Date of creation: 12 Apr 2005
Date of revision: 08 Sep 2005
Handle: RePEc:wpa:wuwpdc:0504005

Note: Type of Document - pdf; pages: 37
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Web page: http://128.118.178.162

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Keywords: Endogenous Growth; Human Capital; Slowdown; Intergenerational Income Distribution;

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References

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Citations

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Cited by:
  1. repec:ebl:ecbull:v:15:y:2004:i:2:p:1-6 is not listed on IDEAS
  2. Aziz, Babar & Khan, Tasneem & Aziz, Shumaila, 2008. "Impact of Higher Education on Economic Growth of Pakistan," MPRA Paper 22912, University Library of Munich, Germany, revised 2008.
  3. Ryo Horii & Koichi Futagami & Akiomi Kitagawa, 2004. "Investment efficiency and intergenerational income distribution: a paradoxical result," Economics Bulletin, AccessEcon, vol. 15(2), pages 1-6.

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