The Augmented Solow Model with Mincerian Schooling and Externalities
Kai Carstensen (),
Erich Gundlach () and
German Economic Review, 2009, vol. 10, issue 4, 448-463
Abstract. We combine the augmented Solow model with the Mincer equation to derive a specification that identifies an education externality within a production function framework. The previous empirical literature has not reached a consensus about the size of the education externality, which is given by the difference between the microeconomic and the macroeconomic return to education. Relative to our benchmark value that is based on a parameterization of the derived specification, we find that the estimated education externality is too large when the empirical model is not properly restricted, and appears to be absent when all control variables of the empirical model are properly accounted for. We note that the absence of an education externality is difficult to reconcile with observed levels of education subsidies for efficiency reasons.
References: Add references at CitEc
Citations: Track citations by RSS feed
Downloads: (external link)
Journal Article: The Augmented Solow Model with Mincerian Schooling and Externalities (2009)
Working Paper: The augmented Solow model with Mincerian schooling and externalities (2009)
Working Paper: The augmented Solow model with Mincerian schooling and externalities (2008)
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:bla:germec:v:10:y:2009:i:4:p:448-463
Ordering information: This journal article can be ordered from
http://www.blackwell ... bs.asp?ref=1465-6485
Access Statistics for this article
German Economic Review is currently edited by Bernhard Felderer, Joseph F. Francois, Ivo Welch, Urs Schweizer and David E. Wildasin
More articles in German Economic Review from Verein für Socialpolitik Contact information at EDIRC.
Bibliographic data for series maintained by Wiley Content Delivery ().