EconPapers    
Economics at your fingertips  
 

EDUCATIONAL INVESTMENTS IN A SPATIALLY VARIED ECONOMY

Andrew G. Mude, Christopher Barrett (), John McPeak and Cheryl Doss ()

No 14737, Working Papers from Cornell University, Department of Applied Economics and Management

Abstract: This paper presents a simple two-period, dual economy model in which migration options may affect the informal financing of educational investments. When credit contracts are universally available and perfectly enforceable, spatially varied returns to human capital have no effect on educational investment patterns. But when financial markets are incomplete and informal mechanisms subject to imperfect contract enforcement must fill the breach, spatial inequality in infrastructure or other attributes that affect the returns to education create spatial differentiation in educational lending and consequently, in educational attainment. Although migration options can increase the returns to education, they can also choke off the informal finance on which poorer rural households depend for long-term, lumpy investments like children's education.

Keywords: Teaching/Communication/Extension/Profession (search for similar items in EconPapers)
Pages: 36
Date: 2003
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1) Track citations by RSS feed

Downloads: (external link)
https://ageconsearch.umn.edu/record/14737/files/wp030021.pdf (application/pdf)

Related works:
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:ags:cudawp:14737

DOI: 10.22004/ag.econ.14737

Access Statistics for this paper

More papers in Working Papers from Cornell University, Department of Applied Economics and Management Contact information at EDIRC.
Bibliographic data for series maintained by AgEcon Search ().

 
Page updated 2022-09-07
Handle: RePEc:ags:cudawp:14737