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2010•RePEc: Research Papers in EconomicsOpen access

Endogenous Growth and Parental Funding of Education in an OLG Model with a Fixed Factor

Lionel Artige

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Abstract

This paper examines the stationary state income level and income growth in an overlapping generations (OLG) model in which production uses three inputs: physical capital, human capital and land.The accumulation of human capital relies on parental funding of education and the past aggregate human capital stock.Four cases exhibiting various possible specifications of returns to scale in output and human capital technologies are studied and compared.

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This paper examines the stationary state income level and income growth in an overlapping generations (OLG) model in which production uses three inputs: physical capital, human capital and land.The accumulation of human capital relies on parental funding of education and the past aggregate human capital stock.Four cases exhibiting various possible specifications of returns to scale in output and human capital technologies are studied and compared.

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Available abstract

This paper examines the stationary state income level and income growth in an overlapping generations (OLG) model in which production uses three inputs: physical capital, human capital and land.The accumulation of human capital relies on parental funding of education and the past aggregate human capital stock.Four cases exhibiting various possible specifications of returns to scale in output and human capital technologies are studied and compared.

Key concepts: Overlapping generations model, Human capital, Economics, Stock (firearms), Endogenous growth theory, Physical capital, Labour economics, Production (economics)

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