A MODEL WITH KNOWLEDGE EXTERNALITIES AND EDUCATIONAL POLICY
A MODEL WITH KNOWLEDGE EXTERNALITIES AND EDUCATIONAL POLICY
Author(s): Aleksandar VasilevSubject(s): Economy, Education, State/Government and Education, Human Resources in Economy
Published by: ASERS Publishing
Keywords: knowledge spillovers; externalities; educational subsidy;
Summary/Abstract: We utilize a standard endogenous-growth model with knowledge spillovers (the “k-K” model). We characterize the optimal Balanced Growth Path (BGP), and compare it to path under market competition. In the presence of externalities, markets fail. One way to restore efficiency is to subsidize knowledge accumulation, and finance the subsidy by taxing final consumption.
Journal: Theoretical and Practical Research in Economic Fields (TPREF)
- Issue Year: XII/2021
- Issue No: 23
- Page Range: 42-44
- Page Count: 3
- Language: English
- Content File-PDF