endogenous growth; human capital; intergenerational transfers
Abstract :
[en] This paper considers a three-overlapping-generations model of endogenous growth wherein human capital is the engine of growth. It first contrasts the laissez-faire and the optimal solutions Three possible accumulation regimes are distinguished. Then it discusses a standard set of tax-transfer instruments that allow for decentralization of the social optimum. Within the limits of our model, the rationale for the standard pattern of intergenerational transfers (the working-aged financing the education of the young and the pension of the old) is seriously questioned. On pure efficiency grounds, the case for generous public pensions is rather weak. (c) 2006 Elsevier Inc. All rights reserved.
Research Center/Unit :
CREPP - Centre de Recherche en Économie Publique et de la Population - ULiège
Disciplines :
Economic systems & public economics
Author, co-author :
Docquier, Frédéric; Université Catholique de Louvain - UCL > IRES
Paddison, Olivier; United Nations Economic Commission for Latin America and the Caribbean
Pestieau, Pierre ; Université de Liège - ULiège > HEC - École de gestion de l'ULiège > Economie publique
Language :
English
Title :
Optimal accumulation in an endogenous growth setting with human capital
Publication date :
2006
Journal title :
Journal of Economic Theory
ISSN :
0022-0531
eISSN :
1095-7235
Publisher :
Academic Press Inc Elsevier Science, San Diego, United States - California
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