This paper constructs an endogenous growth model where the educational sector (higher education) produces human capital and social knowledge by education and research activities. The steady state growth paths are studied for market economy where the educational sector is financed by the income tax imposed on household and the rent on use of social knowledge by firm. We show that the education-research allocation in the educational sector determines the income tax rate and also the growth rate for the market economy. We conclude that there exists a certain education-research allocation maximizing the steady state growth rate, and that the optimal income tax rate is not necessarily zero.
| Published in |
International Journal of Economic Behavior and Organization (Volume 3, Issue 2-1)
This article belongs to the Special Issue Recent Developments of Economic Theory and Its Applications |
| DOI | 10.11648/j.ijebo.s.2015030201.18 |
| Page(s) | 46-51 |
| Creative Commons |
This is an Open Access article, distributed under the terms of the Creative Commons Attribution 4.0 International License (http://creativecommons.org/licenses/by/4.0/), which permits unrestricted use, distribution and reproduction in any medium or format, provided the original work is properly cited. |
| Copyright |
Copyright © The Author(s), 2015. Published by Science Publishing Group |
Human Capital, Social Knowledge, Education
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| [4] | Furumatsu N. and M. Shirai (1998), “The Optimal Subsidies to Higher Education, with Special Reference to Education and Research”, Discussion Paper (Institute of Economics, Chukyo University), No.40, pp.1-12. |
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APA Style
Keiko Nakayama, Masatoshi Shirai. (2015). Education and Research in Public Policy. International Journal of Economic Behavior and Organization, 3(2-1), 46-51. https://doi.org/10.11648/j.ijebo.s.2015030201.18
ACS Style
Keiko Nakayama; Masatoshi Shirai. Education and Research in Public Policy. Int. J. Econ. Behav. Organ. 2015, 3(2-1), 46-51. doi: 10.11648/j.ijebo.s.2015030201.18
AMA Style
Keiko Nakayama, Masatoshi Shirai. Education and Research in Public Policy. Int J Econ Behav Organ. 2015;3(2-1):46-51. doi: 10.11648/j.ijebo.s.2015030201.18
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Download@article{10.11648/j.ijebo.s.2015030201.18,
author = {Keiko Nakayama and Masatoshi Shirai},
title = {Education and Research in Public Policy},
journal = {International Journal of Economic Behavior and Organization},
volume = {3},
number = {2-1},
pages = {46-51},
doi = {10.11648/j.ijebo.s.2015030201.18},
url = {https://doi.org/10.11648/j.ijebo.s.2015030201.18},
eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.ijebo.s.2015030201.18},
abstract = {This paper constructs an endogenous growth model where the educational sector (higher education) produces human capital and social knowledge by education and research activities. The steady state growth paths are studied for market economy where the educational sector is financed by the income tax imposed on household and the rent on use of social knowledge by firm. We show that the education-research allocation in the educational sector determines the income tax rate and also the growth rate for the market economy. We conclude that there exists a certain education-research allocation maximizing the steady state growth rate, and that the optimal income tax rate is not necessarily zero.},
year = {2015}
}
TY - JOUR T1 - Education and Research in Public Policy AU - Keiko Nakayama AU - Masatoshi Shirai Y1 - 2015/03/30 PY - 2015 N1 - https://doi.org/10.11648/j.ijebo.s.2015030201.18 DO - 10.11648/j.ijebo.s.2015030201.18 T2 - International Journal of Economic Behavior and Organization JF - International Journal of Economic Behavior and Organization JO - International Journal of Economic Behavior and Organization SP - 46 EP - 51 PB - Science Publishing Group SN - 2328-7616 UR - https://doi.org/10.11648/j.ijebo.s.2015030201.18 AB - This paper constructs an endogenous growth model where the educational sector (higher education) produces human capital and social knowledge by education and research activities. The steady state growth paths are studied for market economy where the educational sector is financed by the income tax imposed on household and the rent on use of social knowledge by firm. We show that the education-research allocation in the educational sector determines the income tax rate and also the growth rate for the market economy. We conclude that there exists a certain education-research allocation maximizing the steady state growth rate, and that the optimal income tax rate is not necessarily zero. VL - 3 IS - 2-1 ER -
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