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Public Expenditures on Education, Human Capital and Growth in Canada: An OLG Model Analysis

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  • Nabil ANNABI
  • Simon HARVEY
  • Yu LAN

Abstract

Much of the current debate in ageing countries focuses on whether governments should increase investments in human capital. We address this issue by simulating the effects of additional education spending using an overlapping-generations model applied to Canada. In the context of population ageing, the results indicate that how the policy is funded has powerful impacts on the targeted outcomes. Higher education incentives may increase the rate of human capital accumulation and mitigate the negative effects of slowing labour force growth. However, the impact depends on the distortions implied by alternative tax instruments and the efficiency of public expenditures on education.
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  • Nabil ANNABI & Simon HARVEY & Yu LAN, "undated". "Public Expenditures on Education, Human Capital and Growth in Canada: An OLG Model Analysis," EcoMod2008 23800004, EcoMod.
  • Handle: RePEc:ekd:000238:23800004
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    References listed on IDEAS

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    Citations

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    Cited by:

    1. Chakraborty, K.S & krishnankutty, Raveesh, 2012. "Education and Economic Growth in India," MPRA Paper 48524, University Library of Munich, Germany.
    2. Voyvoda, Ebru & Yeldan, Erinç, 2015. "Public policy and growth in Canada: An applied endogenous growth model with human and knowledge capital accumulation," Economic Modelling, Elsevier, vol. 50(C), pages 298-309.
    3. T. Buyse & F. Heylen, 2012. "Leaving the empirical (battle)ground: Output and welfare effects of fiscal consolidation in general equilibrium," Working Papers of Faculty of Economics and Business Administration, Ghent University, Belgium 12/826, Ghent University, Faculty of Economics and Business Administration.
    4. Willem Devriendt & Freddy Heylen, 2017. "Macroeconomic Effects Of Demographic Change In An Olg Model For A Small Open Economy - The Case Of Belgium -," Working Papers of Faculty of Economics and Business Administration, Ghent University, Belgium 17/931, Ghent University, Faculty of Economics and Business Administration.
    5. repec:eee:ecanpo:v:58:y:2018:i:c:p:1-13 is not listed on IDEAS
    6. Herbst, Mikołaj & Strawiński, Paweł, 2016. "Early effects of an early start: Evidence from lowering the school starting age in Poland," Journal of Policy Modeling, Elsevier, vol. 38(2), pages 256-271.
    7. Krzysztof Makarski & Joanna Tyrowicz, 2017. "On welfare effects of increasing retirement age," GRAPE Working Papers 10, GRAPE Group for Research in Applied Economics.
    8. repec:eee:ecmode:v:69:y:2018:i:c:p:205-219 is not listed on IDEAS
    9. Ponzo, Michela & Scoppa, Vincenzo, 2014. "The long-lasting effects of school entry age: Evidence from Italian students," Journal of Policy Modeling, Elsevier, vol. 36(3), pages 578-599.
    10. repec:eee:jpolmo:v:39:y:2017:i:5:p:909-927 is not listed on IDEAS
    11. Bruno Rainville & Nabil Annabi & Maxime Fougère & Bruno Rainville, 2011. "General Equilibrium Effects of Pension Reforms to Increase Retirement Income in Canada," EcoMod2011 2948, EcoMod.
    12. Karolina Goraus & Krzysztof Makarski & Joanna Tyrowicz, 2014. "Does social security reform reduce gains from increasing the retirement age?," Working Papers 2014-03, Faculty of Economic Sciences, University of Warsaw.
    13. Fang, Zheng & Chen, Yang, 2017. "Electricity consumption, Education Expenditure and Economic Growth in Chinese Cities," RIEI Working Papers 2017-02, Xi'an Jiaotong-Liverpool University, Research Institute for Economic Integration.
    14. Dissou, Yazid & Didic, Selma & Yakautsava, Tatsiana, 2016. "Government spending on education, human capital accumulation, and growth," Economic Modelling, Elsevier, vol. 58(C), pages 9-21.
    15. Yazid Dissou & Selma Didic, 2012. "Government spending on education, human capital accumulation, taxes and growth: a multisector dynamic general equilibrium analysis," EcoMod2012 4540, EcoMod.

    More about this item

    JEL classification:

    • D58 - Microeconomics - - General Equilibrium and Disequilibrium - - - Computable and Other Applied General Equilibrium Models
    • J22 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Time Allocation and Labor Supply
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • O51 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - U.S.; Canada

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