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Education policy and R&D based growth in an overlapping generations model

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  • Kohei Okada

    (Graduate School of Economics, Osaka University)

Abstract

Employing an overlapping-generations model of R&D-based growth with endogenous education decision-making and government's education policy,we examine how government'seducation policy and human capital accumulation influence R&D activity. We show that an increase in government's public education expenditure has an inverted U-shaped effect on the growth rate at the steady state.We examine how increased public education expenditure affects welfare and show that an increase in the public education expenditure has an inverted U-shaped effect on the steady state level of welfare.

Suggested Citation

  • Kohei Okada, 2020. "Education policy and R&D based growth in an overlapping generations model," Discussion Papers in Economics and Business 20-07, Osaka University, Graduate School of Economics.
    • Handle: RePEc:osk:wpaper:2007
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    File URL: http://www2.econ.osaka-u.ac.jp/econ_society/dp/2007.pdf
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    References listed on IDEAS

    as
    1. Chu, Angus C. & Furukawa, Yuichi & Zhu, Dongming, 2016. "Growth and parental preference for education in China," Journal of Macroeconomics, Elsevier, vol. 49(C), pages 192-202.
    2. Kohei Okada, 2020. "Dynamic analysis of demographic change and human capital accumulation in an R&D-based growth model," Journal of Economics, Springer, vol. 130(3), pages 225-248, August.
    3. Ken-ichi Hashimoto & Ken Tabata, 2016. "Demographic change, human capital accumulation and R&D-based growth," Canadian Journal of Economics, Canadian Economics Association, vol. 49(2), pages 707-737, May.
    4. Jones, Charles I & Williams, John C, 2000. "Too Much of a Good Thing? The Economics of Investment in R&D," Journal of Economic Growth, Springer, vol. 5(1), pages 65-85, March.
    5. Grossmann, Volker, 2007. "How to promote R&D-based growth? Public education expenditure on scientists and engineers versus R&D subsidies," Journal of Macroeconomics, Elsevier, vol. 29(4), pages 891-911, December.
    6. Jones, Charles I, 1995. "R&D-Based Models of Economic Growth," Journal of Political Economy, University of Chicago Press, vol. 103(4), pages 759-784, August.
    7. Barro, Robert J, 1990. "Government Spending in a Simple Model of Endogenous Growth," Journal of Political Economy, University of Chicago Press, vol. 98(5), pages 103-126, October.
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    More about this item

    Keywords

    Educationexpenditure; Humancapitalaccumulation; R&D;
    All these keywords.

    JEL classification:

    • H52 - Public Economics - - National Government Expenditures and Related Policies - - - Government Expenditures and Education
    • I25 - Health, Education, and Welfare - - Education - - - Education and Economic Development
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • O30 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - General

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