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dc.contributor.authorChakrabarty, Debajyotien_US
dc.contributor.authorChanda, Areendamen_US
dc.contributor.authorGhate, Chetanen_US
dc.date.accessioned2006-10-12en_US
dc.date.accessioned2009-05-08T15:23:35Z-
dc.date.available2009-05-08T15:23:35Z-
dc.date.issued2006en_US
dc.identifier.urihttp://hdl.handle.net/10419/24919-
dc.description.abstractWe construct an overlapping generations model to study the effect of capital controls on human capital investments and the incidence of redistributive politics in a growing economy. We argue that the conventional wisdom linking higher capital controls to lower growth is reproduced only when an economy is sufficiently developed. For under-developed countries, higher capital controls are beneficial for human capital accumulation suggesting that the wisdom does not apply. In an augmented version of the model, we show that a modern sector, characterized by positive levels of investment in education, may not exist unless capital controls are sufficiently high. In particular, higher capital controls make it feasible for a modern sector to exist by lowering the threshold income level required by workers to invest in human capital. These results are consistent with recent evidence suggesting that capital account liberalization positively affects growth only after a country has achieved a certain threshold level of absorptive capacities.en_US
dc.language.isoengen_US
dc.publisherMax-Planck-Inst. für Ökonomik Jenaen_US
dc.relation.ispartofseriesPapers on entrepreneurship, growth and public policy 2106en_US
dc.subject.jelD33en_US
dc.subject.jelE62en_US
dc.subject.jelF21en_US
dc.subject.jelO19en_US
dc.subject.jelO40en_US
dc.subject.ddc330en_US
dc.subject.keywordCapital Flighten_US
dc.subject.keywordEconomic Growthen_US
dc.subject.keywordHuman Capitalen_US
dc.subject.keywordIncome Distributionen_US
dc.subject.keywordLong Term Capital Movementsen_US
dc.subject.keywordOptimal Taxationen_US
dc.subject.stwKapitalfluchten_US
dc.subject.stwWirtschaftswachstumen_US
dc.subject.stwOverlapping Generationsen_US
dc.subject.stwEinkommensumverteilungen_US
dc.subject.stwHumankapitalen_US
dc.subject.stwOptimale Besteuerungen_US
dc.subject.stwTheorieen_US
dc.titleEducation, growth, and redistribution in the presence of capital flighten_US
dc.typeWorking Paperen_US
dc.identifier.ppn518718514en_US
dc.rightshttp://www.econstor.eu/dspace/Nutzungsbedingungen-
Appears in Collections:Discussion Papers on Entrepreneurship, Growth and Public Policy, MPI für Ökonomik

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