A model with knowledge externalities and educational policy

Vasilev, Aleksandar

Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/233515

Title:

A model with knowledge externalities and educational policy

Authors:

Vasilev, Aleksandar

Year of Publication:

2021

Citation:

[Journal:] Theoretical and Practical Research in Economic Fields [ISSN:] 2068-7710 [Issue:] forthcoming [Publisher:] ASERS Publishing Group [Place:] Craiova [Year:] 2021

Publisher:

ASERS Publishing Group, Craiova

Abstract:

We utilize a standard endogenous-growth model with knowledge spillovers (the “k-K” model). We characterize the optimal Balanced Growth Path (BGP), and compare it to the path under market competition. In the presence of externalities, markets fail. One way to restore efficiency is to subsidize knowledge accumulation, and finance the subsidy by taxing final consumption.

Subjects:

knowledge spillovers
externalities
educational subsidy

JEL:

O31
O41

URL of the first edition:

https://journals.aserspublishing.eu/tpref/issue/view/209

Document Type:

Article

Document Version:

Accepted Manuscript (Postprint)

Appears in Collections:

Accepted Articles, EconStor Direct