Federalism, education-related public good and growth when agents are heterogeneous

Floriana Cerniglia and Riccarda Longaretti

Journal of Economics, 2013, vol. 109, issue 3, 301 pages

Abstract: In this paper we use an endogenous-growth model with human capital and heterogeneous agents to analyse the relationship between fiscal federalism and economic growth. The results show that federalism, which allows education-related public good levels to be tailored to the local distribution of human capital, increases human capital accumulation. This in turn leads to higher rates of growth. The benefits of federalism are stronger, the larger the intra-jurisdiction variance of agents’ human capital. Copyright Springer-Verlag 2013

Keywords: Fiscal federalism; Endogenous economic growth; Overlapping generations; Heterogeneous agents; H77; O41 (search for similar items in EconPapers)
Date: 2013
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Citations: View citations in EconPapers (6)

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Working Paper: Federalism, Education-Related Public Good and Growth when Agents are Heterogeneou (2008)
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Persistent link: https://EconPapers.repec.org/RePEc:kap:jeczfn:v:109:y:2013:i:3:p:271-301

DOI: 10.1007/s00712-012-0298-0

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