Availability of Higher Education and Long-Term Economic Growth

Ryo Horii, Akiomi Kitagawa () and Koichi Futagami ()

Development and Comp Systems from EconWPA

Abstract: This paper examines the economic growth effects of limited availability of higher education in a simple endogenous growth model with overlapping generations. With limited availability, the scarcity of human capital keeps its price high and distributes a larger share of the aggregate output to young households. Under certain conditions, it leads to greater aggregate savings in each period, thereby enabling the economy to grow faster than without any limitation. In such cases, an excessive expansion in the availability causes a temporary boom followed by a serious deficiency in investible funds, resulting in a substantial slowdown in economic growth.

Keywords: Endogenous Growth; Human Capital; Slowdown; Intergenerational Income Distribution (search for similar items in EconPapers)
JEL-codes: O41 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-dev, nep-dge and nep-edu
Date: 2005-04-12, Revised 2005-09-08
Note: Type of Document - pdf; pages: 37
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http://129.3.20.41/eps/dev/papers/0504/0504005.pdf (application/pdf)

Related works:
Working Paper: Availability of Higher Education and Long-Term Economic Growth (2003)
Working Paper: Availability of Higher Education and Long-Term Economic Growth (2005)
Journal Article: AVAILABILITY OF HIGHER EDUCATION AND LONG-TERM ECONOMIC GROWTH (2008)
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Persistent link: http://EconPapers.repec.org/RePEc:wpa:wuwpdc:0504005

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