Optimal Public Investments in Education and Endogenous Growth
Optimal public investments in human capital through subsidizing private education or providing public education are considered in an endogenous growth model with externalities. Subsidizing private education stimulates growth, improves welfare, and has no distributional effect. While reducing income inequality as in the literature, public education hinders the growth of the average income unless externalities are strong enough and reduces the welfare of the median agent unless initial income inequality is sufficiently high. Societies with high income inequality may provide public education and will replace it with subsidized private education in some future periods as income converges. Copyright 1996 by The editors of the Scandinavian Journal of Economics.
To our knowledge, this item is not available for
download. To find whether it is available, there are three
1. Check below under "Related research" whether another version of this item is available online.
2. Check on the provider's web page whether it is in fact available.
3. Perform a search for a similarly titled item that would be available.
Volume (Year): 98 (1996)
Issue (Month): 3 ()
|Contact details of provider:|| Web page: http://onlinelibrary.wiley.com/journal/10.1111/(ISSN)1467-9442|
|Order Information:||Web: http://www.blackwellpublishing.com/subs.asp?ref=0347-0520|
When requesting a correction, please mention this item's handle: RePEc:bla:scandj:v:98:y:1996:i:3:p:387-404. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Wiley-Blackwell Digital Licensing)or (Christopher F. Baum)
If references are entirely missing, you can add them using this form.