EconStor >
ifo Institut – Leibniz-Institut für Wirtschaftsforschung an der Universität München >
CESifo Working Papers, CESifo Group Munich >

Please use this identifier to cite or link to this item:

http://hdl.handle.net/10419/30625
  
Title:Optimal education policies and comparative advantage PDF Logo
Authors:Bougheas, Spiros P.
Kneller, Richard Anthony
Riezman, Raymond
Issue Date:2009
Series/Report no.:CESifo working paper 2631
Abstract:We consider the optimal education policies of a small economy whose government has a limited budget. Initially, the economy is closed and the government chooses its education policy to maximize welfare under autarky. Then the economy trades with the rest of the world. Lastly, the government chooses a new education policy that maximizes welfare under trade. Is it ever optimal for the government to choose its new policy so that it reverses the economy's comparative advantage? We find that if the budget stays fixed when it is optimal to 'move up the skills chain' it is not feasible. In such a case a foreign loan is welfare improving. A move in the opposite direction can be optimal and when it is optimal it is also feasible.
Subjects:patterns of trade
education policy
welfare
JEL:F11
O15
Document Type:Working Paper
Appears in Collections:CESifo Working Papers, CESifo Group Munich

Files in This Item:
File Description SizeFormat
603307930.pdf260.37 kBAdobe PDF
No. of Downloads: Counter Stats
Download bibliographical data as: BibTeX
Share on:http://hdl.handle.net/10419/30625

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