Optimal accumulation in an endogenous growth setting with human capital

Frédéric Docquier, Paddison Oliver and Pierre Pestieau

No 2006022, Discussion Papers (ECON - Département des Sciences Economiques) from Université catholique de Louvain, Département des Sciences Economiques

Abstract: This paper considers a three-overlapping-generations model of endogeneous growth wherein human capital is the engine of growth. It first contrasts the ‘laissez-faire’ and the optimal solutions. Three possible accumulation regimes are distinguished. Then it discusses a standard set of tax-transfer instruments that allow for decentralization of the social optimum. Within the limits of our model, the rationale for the standard pattern of intergenerational transfers (the working-aged financing the education of the young and the pension of the old) is seriously questioned. On pure efficiency grounds, the case for generous public pensions is rather weak.

Keywords: Endogenous growth; human capital; intergenerational transfers (search for similar items in EconPapers)
JEL-codes: D90 H21 H52 (search for similar items in EconPapers)
Pages: 26
Date: 2006-05-01
New Economics Papers: this item is included in nep-dev, nep-dge, nep-edu, nep-hrm and nep-pbe
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
http://sites.uclouvain.be/econ/DP/IRES/2006-22.pdf (application/pdf)

Related works:
Working Paper: Optimal accumulation in an endogenous growth setting with human capital (2009)
Journal Article: Optimal accumulation in an endogenous growth setting with human capital (2007)
Working Paper: Optimal Accumulation in an Endogenous Growth Setting with Human Capital (2006)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:ctl:louvec:2006022

Access Statistics for this paper

More papers in Discussion Papers (ECON - Département des Sciences Economiques) from Université catholique de Louvain, Département des Sciences Economiques Place Montesquieu 3, 1348 Louvain-la-Neuve (Belgium). Contact information at EDIRC.
Bibliographic data for series maintained by Virginie LEBLANC ().