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Education funding and regional convergence


  • Philippe Monfort

    () (IRES, Université catholique de Louvain, Place Montesquieu 3, B-1348 Louvain-la-Neuve, Belgium)

  • David de la Croix

    () (National Fund for Scientific Research and IRES, Université catholique de Louvain, Place Montesquieu 3, B-1348 Louvain-la-Neuve, Belgium)


The aim of this paper is to discuss the process of regional convergence within the framework of an overlapping generations model in which the engine of growth is the accumulation of human capital. In particular, we consider different education funding systems and compare their performance in terms of growth rates and pace of convergence between two heterogeneous regions. The analysis suggests that the choice of a particular education system incorporates a possible trade-off between long run growth rate and short run convergence. In such choice, the initial capital stock and the extent of regional human capital discrepancy appear as central variables.

Suggested Citation

  • Philippe Monfort & David de la Croix, 2000. "Education funding and regional convergence," Journal of Population Economics, Springer;European Society for Population Economics, vol. 13(3), pages 403-424.
  • Handle: RePEc:spr:jopoec:v:13:y:2000:i:3:p:403-424
    Note: Received: 27 January 1999/Accepted: 16 April 1999

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    References listed on IDEAS

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    Cited by:

    1. Marion Davin & Karine Gente & Carine Nourry, 2012. "Social optimum in an OLG model with paternalistic altruism," Economics Bulletin, AccessEcon, vol. 32(4), pages 3417-3424.
    2. de la Croix, David & Doepke, Matthias, 2004. "Public versus private education when differential fertility matters," Journal of Development Economics, Elsevier, vol. 73(2), pages 607-629, April.
    3. de la Croix, David, 2001. "Growth dynamics and education spending: The role of inherited tastes and abilities," European Economic Review, Elsevier, vol. 45(8), pages 1415-1438, August.
    4. Rainald Borck, 2011. "Federalism, Fertility, and Growth," Scandinavian Journal of Economics, Wiley Blackwell, vol. 113(1), pages 30-54, March.
    5. David E. Wildasin, 2014. "Human Capital Mobility: Implications for Efficiency, Income Distribution, and Policy," CESifo Working Paper Series 4794, CESifo Group Munich.
    6. Sayaka Yakita, 2011. "Fiscal decentralization, migration and economic growth," Regional Science Policy & Practice, Wiley Blackwell, vol. 3(4), pages 381-399, November.
    7. Lionel Artige, 2010. "Endogenous Growth and Parental Funding of Education in an OLG Model with a Fixed Factor," CREPP Working Papers 1003, Centre de Recherche en Economie Publique et de la Population (CREPP) (Research Center on Public and Population Economics) HEC-Management School, University of Liège.

    More about this item


    Altruism · education · growth · convergence · capital mobility;

    JEL classification:

    • O41 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - One, Two, and Multisector Growth Models
    • F22 - International Economics - - International Factor Movements and International Business - - - International Migration


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