Altruism, Education Subsidy and Growth

Mauricio Armellini and Parantap Basu

EERI Research Paper Series from Economics and Econometrics Research Institute (EERI), Brussels

Abstract: An optimal education subsidy formula is derived using an overlapping generations model with parental altruism. The model predicts that public education subsidy is greater in economies with lesser parental altruism because a benevolent government has to compensate for the shortfall in private education spending of less altruistic parents with a finite life. On the other hand, growth is higher in economies with greater parental altruism. Cross-country regressions using the World Values Survey for altruism lend support to our model predictions. The model provides insights about the reasons for higher education subsidy in richer countries.

Keywords: Altrusim; Education Subsidy; Human Capital; Growth. (search for similar items in EconPapers)
JEL-codes: D9 (search for similar items in EconPapers)
Date: 2010-08-21
New Economics Papers: this item is included in nep-dev, nep-dge, nep-edu, nep-fdg, nep-hrm, nep-lab and nep-soc
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
http://www.eeri.eu/documents/wp/EERI_RP_2010_21.pdf (application/pdf)

Related works:
Working Paper: Altruism, Education Subsidy and Growth (2011)
Working Paper: Altrusim. Education Subsidy and Growth (2010)
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:eei:rpaper:eeri_rp_2010_21

Access Statistics for this paper

More papers in EERI Research Paper Series from Economics and Econometrics Research Institute (EERI), Brussels Contact information at EDIRC.
Bibliographic data for series maintained by Julia van Hove ().