Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/142583 
Year of Publication: 
2010
Series/Report no.: 
EERI Research Paper Series No. 21/2010
Publisher: 
Economics and Econometrics Research Institute (EERI), Brussels
Abstract: 
An optimal education subsidy formula is derived using an overlapping generations model with parental altruism. The model predicts that public education subsidy is greater in economies with lesser parental altruism because a benevolent government has to compensate for the shortfall in private education spending of less altruistic parents with a finite life. On the other hand, growth is higher in economies with greater parental altruism. Cross-country regressions using the World Values Survey for altruism lend support to our model predictions. The model provides insights about the reasons for higher education subsidy in richer countries.
Subjects: 
Altrusim
Education Subsidy
Human Capital
Growth
JEL: 
D9
Document Type: 
Working Paper

Files in This Item:
File
Size





Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.