Zurück zum Heft
Cover von: School Loans, Subsidies, and Economic Growth
Akira Yakita

School Loans, Subsidies, and Economic Growth

Rubrik: Articles
Jahrgang 60 (2004) / Heft 2, S. 262-276 (15)
Publiziert 09.07.2018
DOI 10.1628/0015221041525778
Veröffentlicht auf Englisch.
  • Artikel PDF
  • lieferbar
  • 10.1628/0015221041525778
This paper examines the effects of government educational subsidies on economic growth and welfare. In an overlapping-generations model with human-capital accumulation, it is shown that, even when human-capital externalities are large, an increase in government subsidies to private-education debt may have a negative effect on the long-run economic growth rate through the general-equilibrium effects of factor-price changes, thereby making future generations worse off. We also show that subsidy policy does not necessarily result in a Pareto improvement even when there are positive effects on growth.