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Demand for Education Investment in A Model with Uncertainty

Author

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  • Hiroki Tanaka

    (Faculty of Policy Studies, Doshisha University)

  • Masaya Yasuoka

    (School of Economics, Kwansei Gakuin University)

Abstract

Many reports of the relevant literature describe studies of education investment. As undertaken by Glomm and Ravikumar (1992), we also consider public and private school education in the study described herein. However, different from the related literature, our model setting incorporates private tutoring and uncertainty about the productivity of human capital accumulation. Based on Bearse, Glomm and Patterson (2005), our paper presents consideration of the uncertainty about education results and presents examination of how demand for education investment is determined. Results show that, because of uncertainty about education results, demand for education investment is less than in a case of no uncertainty.

Suggested Citation

  • Hiroki Tanaka & Masaya Yasuoka, 2023. "Demand for Education Investment in A Model with Uncertainty," Discussion Paper Series 245, School of Economics, Kwansei Gakuin University.
    • Handle: RePEc:kgu:wpaper:245
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    References listed on IDEAS

    as
    1. Brodaty, Thomas & Gary-Bobo, Robert J. & Prieto, Ana, 2014. "Do risk aversion and wages explain educational choices?," Journal of Public Economics, Elsevier, vol. 117(C), pages 125-148.
    2. Glomm, Gerhard & Ravikumar, B., 2003. "Public education and income inequality," European Journal of Political Economy, Elsevier, vol. 19(2), pages 289-300, June.
    3. Andersson, Fredrik & Konrad, Kai A., 2003. "Human capital investment and globalization in extortionary states," Journal of Public Economics, Elsevier, vol. 87(7-8), pages 1539-1555, August.
    4. Glomm, Gerhard, 1997. "Parental choice of human capital investment," Journal of Development Economics, Elsevier, vol. 53(1), pages 99-114, June.
    5. Robin Boadway & Nicolas Marceau & Maurice Marchand, 1992. "Investment in Education and the Time Inconsistency of Redistributive Tax Policy," Working Paper 860, Economics Department, Queen's University.
    6. Glomm, Gerhard & Ravikumar, B, 1992. "Public versus Private Investment in Human Capital Endogenous Growth and Income Inequality," Journal of Political Economy, University of Chicago Press, vol. 100(4), pages 818-834, August.
    7. Marceau, N. & Boadway, R. & Marchand, M., 1992. "Investment in Education and the Inconsistency of redistributive Tax Policy," Papers 9215, Laval - Recherche en Politique Economique.
    8. Peter Bearse & Gerhard Glomm & Debra Moore Patterson, 2005. "Endogenous Public Expenditures on Education," Journal of Public Economic Theory, Association for Public Economic Theory, vol. 7(4), pages 561-577, October.
    9. Lord, William & Rangazas, Peter, 1998. "Capital Accumulation and Taxation in a General Equilibrium Model with Risky Human Capital," Journal of Macroeconomics, Elsevier, vol. 20(3), pages 509-531, July.
    10. Takashi Oshio & Masaya Yasuoka, 2009. "How Long Should We Stay In Education If Ability Is Screened?," Metroeconomica, Wiley Blackwell, vol. 60(3), pages 409-431, July.
    11. Gerhard Glomm & Michael Kaganovich, 2003. "Distributional Effects of Public Education in an Economy with Public Pensions," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 44(3), pages 917-937, August.
    12. Boadway, Robin & Marceau, Nicolas & Marchand, Maurice, 1992. "Investment in Education and the Time Inconsistency of Redistributive Tax Policy," Queen's Economics Department Working Papers 273254, Queen's University - Department of Economics.
    13. Thomas Brodaty & Robert J. Gary‐bobo & Ana Prieto, 2014. "Do Risk Aversion and Wages Explain Educational Choices?," Post-Print hal-03565400, HAL.
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    Keywords

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    JEL classification:

    • I22 - Health, Education, and Welfare - - Education - - - Educational Finance; Financial Aid
    • H52 - Public Economics - - National Government Expenditures and Related Policies - - - Government Expenditures and Education

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