Availability of Higher Education and Long-Term Economic Growth

Ryo Horii, Akiomi Kitagawa () and Koichi Futagami

No 03-14-Rev, Discussion Papers in Economics and Business from Osaka University, Graduate School of Economics

Abstract: This paper examines the economic growth effects of limited availability of higher education in a simple endogenous growth model with overlapping generations. With limited availability, the scarcity of human capital keeps its price high and distributes a larger share of the aggregate output to young households. Under certain conditions, it leads to greater aggregate savings in each period, thereby enabling the economy to grow faster than without any limitation. In such cases, an excessive expansion in the availability causes a temporary boom followed by a serious deficiency in investible funds, resulting in a substantial slowdown in economic growth.

Keywords: Endogenous Growth; Human Capital; Slowdown; Intergenerational Income Distribution. (search for similar items in EconPapers)
JEL-codes: O41 (search for similar items in EconPapers)
Pages: 39 pages
Date: 2003-11, Revised 2005-09
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http://www2.econ.osaka-u.ac.jp/library/global/dp/0314R.pdf (application/pdf)

Related works:
Journal Article: AVAILABILITY OF HIGHER EDUCATION AND LONG‐TERM ECONOMIC GROWTH* (2008)
Working Paper: Availability of Higher Education and Long-Term Economic Growth (2005)
Working Paper: Availability of Higher Education and Long-Term Economic Growth (2003)
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Persistent link: https://EconPapers.repec.org/RePEc:osk:wpaper:0314r

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