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Optimal Education with Mobile Capital. An OLG Approach (new title: Optimal Public Education under Capital Mobility)

Author

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  • Jean-Marie Viaene
  • Itzhak Zilcha

Abstract

The paper considers a two-country model of overlapping generations economies with intergenerational transfers carried out in the form of bequest and investment in human capital. We examine in competitive equilibrium the optimal provision of education with and without capital markets 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 transitory and long-run effects of capital markets integration, in equilibrium, on the optimal provision of education and growth. Third, we examine a competition game where countries compete in the provision of public education.

Suggested Citation

  • Jean-Marie Viaene & Itzhak Zilcha, 2000. "Optimal Education with Mobile Capital. An OLG Approach (new title: Optimal Public Education under Capital Mobility)," CESifo Working Paper Series 289, CESifo.
    • Handle: RePEc:ces:ceswps:_289
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    References listed on IDEAS

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    More about this item

    Keywords

    Altruism; education; growth; human capital; capital markets integration;
    All these keywords.

    JEL classification:

    • D90 - Microeconomics - - Micro-Based Behavioral Economics - - - General
    • E20 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - General (includes Measurement and Data)
    • F20 - International Economics - - International Factor Movements and International Business - - - General
    • J20 - Labor and Demographic Economics - - Demand and Supply of Labor - - - General

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