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Public expenditures on education, human capital and growth in Canada: An OLG model analysis

Nabil Annabi (), Simon Harvey and Yu Lan

Journal of Policy Modeling, 2011, vol. 33, issue 6, 852-865

Abstract: Much of the current debate in ageing countries focuses on whether governments should increase investments in human capital. We address this issue by simulating the effects of additional education spending using an overlapping-generations model applied to Canada. In the context of population ageing, the results indicate that how the policy is funded has powerful impacts on the targeted outcomes. Higher education incentives may increase the rate of human capital accumulation and mitigate the negative effects of slowing labour force growth. However, the impact depends on the distortions implied by alternative tax instruments and the efficiency of public expenditures on education.

Keywords: Public expenditure; Human capital; General equilibrium model; Overlapping generations; Canada (search for similar items in EconPapers)
JEL-codes: D58 J22 J24 O51 (search for similar items in EconPapers)
Date: 2011
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Working Paper: Public Expenditures on Education, Human Capital and Growth in Canada: An OLG Model Analysis (2008) Downloads
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DOI: 10.1016/j.jpolmod.2011.08.020

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