Enhancing growth and welfare through debt-financed education

Stauvermann, Peter Josef; Kumar, Ronald Ravinesh

doi:10.1080/1331677x.2017.1305799

Cited by 6 publications

(8 citation statements)

References 45 publications

(45 reference statements)

Supporting

Mentioning

Contrasting

Order By: Relevance

“…However, this would additionally require an intertemporal redistribution of income from the young to the old as proposed by Boldrin and Montes (2005) and recently by Stauvermann and Kumar (2017). Further, we have shown that the more unequal the distribution of human capital, the higher will be the degree of redistribution of income and the growth rate of the economy.…”

Section: Discussionmentioning

confidence: 93%

Adult Learning, Economic Growth and the Distribution of Income

Stauvermann

Kumar

2018

Economies

View full text Add to dashboard Cite

Technological change causes three consequences: it guarantees economic growth, it requires employees to acquire more skills and human capital, and it increases inequality if employees are not capable adapting to new technologies. The second consequence makes it almost necessary for employees to learn during their whole working life, thereby accelerating technological change. Accordingly, the OECD (the Organization for Economic Co-operation and Development) and many governments supports the idea of lifelong learning, but it remains unclear how to finance the education of adult students who are working efficiently. In this paper, we use an overlapping generation model with human capital accumulation and inequality to derive a mechanism which reduces income inequality and provides an incentive for all adults to invest more in education. As a consequence, the growth rate of per capita income will increase and income inequality will be reduced.

show abstract

Section: Discussionmentioning

confidence: 93%

Adult Learning, Economic Growth and the Distribution of Income

Stauvermann

Kumar

2018

Economies

View full text Add to dashboard Cite

show abstract

“…We apply an extended Diamond [28] OLG model similar to Stauvermann and Kumar [29][30][31]. The underlying idea goes back to de la Croix and Doepke [33,34].…”

Section: Worldwide Ghg Emissionsmentioning

confidence: 99%

“…The representative agent derives his/her utility from the consumption in the second and third period , the number of children (their quantity) , and the level of the children's human capital stock (their quality) ℎ . The utility function follows from de la Croix and Doepke [25,26,40] and Stauvermann and Kumar [29][30][31].…”

Section: The Modelmentioning

confidence: 99%

See 1 more Smart Citation

The Effects of One-Child Policy on the Economy and the Environment in an OLG Framework

Stauvermann¹,

Hu²,

Kumar³

2018

Preprint

Self Cite

View full text Add to dashboard Cite

In this paper we take China’s one child policy as an example and investigate its environmental impact. We develop a model for an economy using a standard overlapping generation model extended with human capital, endogenous fertility, and changing life expectancy. To model the environmental impact of economic activities, we use a modified IPAT model. We show that China’s one child has a very strong positive impact on the environment, particularly if we consider the whole human legacy.        

show abstract

“…We apply an extended Diamond [42] overlapping generation (OLG) model [43][44][45][46]. The OLG model has the advantage that it does not rely on the strong assumption of perfect altruism as assumed by Shi and Zhang's [47] model.…”

Section: Introductionmentioning

confidence: 99%

The Effects of a Revenue-Neutral Child Subsidy Tax Mechanism on Growth and GHG Emissions

Kumar

Stauvermann

2019

Sustainability

Self Cite

View full text Add to dashboard Cite

Growing population, greenhouse gas emissions, and the pressure to improve economic growth are conflicting and controversial issues at the core of political economy. In this paper, using a theoretical model, we show that by shifting relative costs of child-rearing and costs for education, we can achieve a slowdown in population growth and greenhouse emissions, and an enhancement of economic growth. These goals are based on two fundamental considerations—the quantity–quality tradeoff with respect to the choice of the number, and the educational level of children. An analysis is presented using a standard overlapping generation (OLG) framework that is extended with human capital, endogenous fertility, and changing life expectancy. The environmental impact of economic activities is modeled using a modified IPAT framework. Our results show that it is possible to reduce the level of carbon emissions of the whole economy and to generate a Pareto improvement. Subsequently, an economic strategy is presented that is costless, has various advantages, and particularly useful for countries experiencing high fertility rate that are not sustainable.

show abstract

Enhancing growth and welfare through debt-financed education

Cited by 6 publications

References 45 publications

Adult Learning, Economic Growth and the Distribution of Income

Adult Learning, Economic Growth and the Distribution of Income

The Effects of One-Child Policy on the Economy and the Environment in an OLG Framework

The Effects of a Revenue-Neutral Child Subsidy Tax Mechanism on Growth and GHG Emissions

Contact Info

Product

Resources

About