Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/230432 
Year of Publication: 
2018
Series/Report no.: 
Cardiff Economics Working Papers No. E2018/26
Publisher: 
Cardiff University, Cardiff Business School, Cardiff
Abstract: 
Parental transfers towards the education of children are non-trivial, especially in countries, characterized by both imperfect credit markets and high economic growth rates. In this paper, we analyze the role of parental altruism on economic growth and dynamic efficiency, especially when credit markets for education loans are missing. We demonstrate conditions under which missing or imperfect credit markets increase economic growth and do not hinder dynamic efficiency. We also show that a newly constructed index of parental altruism, orthogonal to income effects, exhibits high cross-country correlations with model-implied measures of parental altruism at different levels of credit market development.
Subjects: 
Education
Human Capital
Credit Constraints
Growth
JEL: 
I25
O16
O41
Document Type: 
Working Paper

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