Public education under capital mobility
Redirect to publisher's version
(publisher's version.url.txt, 47 bytes)
The paper considers a two-country model of overlapping generations economies with intergenerational transfers motivated by altruism and investment in human capital. We examine in a non-stationary competitive equilibrium the optimal provision of education with and without capital market integration. First, we explore how regimes of education provision—public, private or mixed—arise and how they affect the dynamics of autarkic economies. Second, we study the effects of capital market integration, in equilibrium, on the optimal provision of education. Third, we show that capital market integration enhances government intervention in the provision of public education (to improve the welfare of its constituents) and consider various solutions to such a competition.
- J2 : Time Allocation, Work Behavior, and Employment Determination and Creation; Human Capital
- E2 : Consumption, Saving, Production, Employment, and Investment
- D9 : Intertemporal Choice and Growth
- F2 : International Factor Movements and International Business