A model with knowledge externalities and educational policy

Aleksandar Vasilev

EconStor Open Access Articles and Book Chapters, 2021, issue forthcoming

Abstract: We utilize a standard endogenous-growth model with knowledge spillovers (the “k-K” model). We characterize the optimal Balanced Growth Path (BGP), and compare it to the path under market competition. In the presence of externalities, markets fail. One way to restore efficiency is to subsidize knowledge accumulation, and finance the subsidy by taxing final consumption.

Keywords: knowledge spillovers; externalities; educational subsidy (search for similar items in EconPapers)
JEL-codes: O31 O41 (search for similar items in EconPapers)
Date: 2021
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Related works:
Journal Article: A MODEL WITH KNOWLEDGE EXTERNALITIES AND EDUCATIONAL POLICY (2021)
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Persistent link: https://EconPapers.repec.org/RePEc:zbw:espost:233515

DOI: 10.14505/tpref.v12.1(23).05

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