Munich Personal RePEc Archive

Enhancing Growth and Welfare through debt-financed Education

Stauvermann, Peter Josef and Kumar, Ronald (2014): Enhancing Growth and Welfare through debt-financed Education.

This is the latest version of this item.

[img]
Preview
PDF
MPRA_paper_59421.pdf

Download (119kB) | Preview

Abstract

Using an over-lapping generations (OLG) model, we show how small open economies can enhance their growth through educational subsidies financed via public debt and reduce their fertility rate. We show that subsidizing education through public debt leads to a Pareto improvement of all generations. Even if a country is a net borrower in the international capital market, we show that this subsidy-policy can help, under certain conditions, to improve its net borrowing position. Especially, our analysis can be applied to less-developed countries.

Available Versions of this Item

  • Enhancing Growth and Welfare through debt-financed Education. (deposited 24 Oct 2014 10:31) [Currently Displayed]
UB_LMU-Logo
MPRA is a RePEc service hosted by
the Munich University Library in Germany.