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The Effect of Education Subsidies in an Aging Economy

  • Megumi Mochida


    (Graduate School of Economics, Osaka University)

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    We examine how an introduction of education subsidies affects growth rates, incorporating an uncertain lifetime. We demonstrate that the introduction of subsidies engenders higher growth rates in aging economies, except when the education-tax rate is sufficiently low.

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    Paper provided by Osaka University, Graduate School of Economics and Osaka School of International Public Policy (OSIPP) in its series Discussion Papers in Economics and Business with number 05-30.

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    Length: 16 pages
    Date of creation: Oct 2005
    Date of revision:
    Handle: RePEc:osk:wpaper:0530
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    1. Kaganovich, M & Zilcha, I, 1997. "Education, Social Security and Growth," Papers 1-97, Tel Aviv.
    2. Akira Yakita, 2001. "Uncertain lifetime, fertility and social security," Journal of Population Economics, Springer, vol. 14(4), pages 635-640.
    3. Rowena A. Pecchenino & Patricia S. Pollard, 2000. "Dependent children and aged parents: funding education and social security in an aging economy," Working Papers 1995-001, Federal Reserve Bank of St. Louis.
    4. Berthold U. Wigger, 2004. "Are Higher Education Subsidies Second Best?," Scandinavian Journal of Economics, Wiley Blackwell, vol. 106(1), pages 65-82, 03.
    5. 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 818-34, August.
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