Please use this identifier to cite or link to this item: http://hdl.handle.net/2381/7597
Title: Intergenerational complementarities in education and the relationship between growth and volatility
Authors: Palivos, Theodore
Varvarigos, Dimitrios
First Published: Mar-2009
Publisher: Dept. of Economics, University of Leicester
Abstract: We construct an overlapping generations model in which parents vote on the tax rate that determines publicly provided education and offspring choose their effort in learning activities. The technology governing the accumulation of human capital allows these decisions to be strategic complements. In the presence of coordination failure, indeterminacy and, possibly, growth cycles emerge. In the absence of coordination failure, the economy moves along a uniquely determined balanced growth path. We argue that such structural differences can account for the negative correlation between volatility and growth.
Series/Report no.: Papers in Economics
09/8
Links: http://www.le.ac.uk/economics/research/discussion/papers2009.html
http://hdl.handle.net/2381/7597
Type: Report
Appears in Collections:Reports, Dept. of Economics

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