Education policy and R&D-based growth in an overlapping-generations model

We employ a research and development (R&D) based growth overlapping-generations model with endogenous education decision-making and the government's education policy to examine how education policy and human capital accumulation influence R&D activities. According to our study, an incre...

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Bibliographic Details
Published in:Applied economics letters 2023-09, Vol.30 (15), p.2091-2097
Main Author: Okada, Kohei
Format: Article
Language:English
Subjects:
Accumulation
Capital formation
Decision making
Economic analysis
Economic theory
Economics
Education expenditure
Education policy
Endogenous
Expenditures
Government
Growth rate
Human capital
human capital accumulation
R&D
Research & development
Tax rates
Taxation
Welfare
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Summary:We employ a research and development (R&D) based growth overlapping-generations model with endogenous education decision-making and the government's education policy to examine how education policy and human capital accumulation influence R&D activities. According to our study, an increase in the government's public education expenditure has an inverted U-shaped effect on the steady-state growth rate. Moreover, a tax rate level that maximizes the steady-state growth rate exists. At this tax rate level, the steady-state welfare level is also maximized.
ISSN:1350-4851
1466-4291
DOI:10.1080/13504851.2022.2093827