PRODUCTION AND CONSUMPTION OF EDUCATION IN A R&D-BASED GROWTH MODEL |
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Authors: | Juntip Boonprakaikawe Frédéric Tournemaine |
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Institution: | Chulalongkorn University; University of Nottingham |
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Abstract: | We develop a R&D‐based growth model with endogenous accumulation of human capital. We investigate the idea that education is a good entering in the preferences of individuals. We seek to analyse how the decisions of individuals to invest in human capital can be altered by changes in economic policies and how they can be reflected on the level of growth in the long run. We show that policy changes affect growth through their effect on the decision of individuals to invest in human capital. The effects obtained depend whether individuals enjoy to acquire education or if they consider it as a ‘bad’. In the absence of any policy intervention, the level of growth can be excessive or insufficient compared with the optimum. |
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Keywords: | R&D education economic policy growth |
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