Formal education and economic growth.
Item
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Title
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Formal education and economic growth.
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Identifier
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AAI9325109
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identifier
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9325109
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Creator
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Jang, Deogjin.
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Contributor
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Adviser: Salih Neftci
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Date
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1993
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Language
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English
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Publisher
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City University of New York.
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Subject
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Economics, Theory
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Abstract
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Roles of formal education on the long-run growth rate are examined. Individuals specialize in accumulating human capital for multiple time periods in childhood and produce output as well as help their children learn knowledge in adulthood. It is shown, first, that constant returns to scale and human capital of adults as an input in the educational production function are necessary and sufficient conditions for the economy to grow positively in the steady state. That is, human capital of children doesn't have to be an input in the educational production function in order to show the growth of the economy in the steady state.;Second, if they face a probability of death in adulthood, individuals would emphasize current consumption relative to future consumptions, which may imply that the economy invests less in the output sector and thus grows at a slower rate.;Third, if children's learning is not affected by their previous learning, the steady-state growth rate falls as periods of schooling increase. When students' learning only depends on the efforts of adults independent of their previous amount of learning, the increase in periods of schooling would just scale down the productive parameter of the educational production function through adult-student ratio, which has the same effect as once and for all decrease in the level of technology in the education sector.;Fourth, if the educational production function depends on children's as well adults' human capital, and the share of children's human capital in the production function is sufficiently high but less than one, the growth rate of the economy might be positively related to periods of schooling.;Those findings may imply that, without knowing the true educational production function, the effect of periods of schooling on the growth rate is inconclusive: it depends on the functional form of the schooling technology.
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Type
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dissertation
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Source
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PQT Legacy CUNY.xlsx
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degree
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Ph.D.
