Endogenous growth, education subsidies, and intergenerational transfers
- Autores: Elena del Rey Canteli, Miguel Angel López García
- Localización: XXI Encuentro Economía Pública, 2014, pág. 34
- Idioma: inglés
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Resumen
In this paper we investigate the welfare e ects of both education subsidies and intergenerational transfers along an arbitrary, non-optimal balanced growth path in an overlapping generations model with both physical and human capital. A lump-sum transfer from the working middle-aged to the elderly translates into a lower accumulation of both physical and human capital (and thus a smaller growth rate). However, it can increase or decrease welfare. A change in the rate of education subsidy can have either a positive or a negative e ect on the accumulation of both physical and human capital, but conditions that guarantee a clear-cut sign of the e ect of education subsidies on welfare are derived. We also study the comparative dynamics when departing from the laissez-faire balanced growth path, and show that the intergenerational e ects of the optimal policy are equivalent to those of a pure pay-as-you-go social security system.
