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Education and Research in Public Policy

Received: 3 March 2015     Accepted: 24 March 2015     Published: 30 March 2015
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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.

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

Keywords

Human Capital, Social Knowledge, Education

References
[1] Dasgupta, D (1999), “Growth versus Welfare in a Model of Nonrival Infrastructure”, Journal of Development Economics, Vol.58, No.2, pp.359-385.
[2] Dasgupta, D.(2001), “Lindahl Pricing, Nonrival Infrastructure and Endogenous Growth”, Journal of Public Economic Theory, Vol.3, No.4, pp.413-430.
[3] Eckstein, Z and I. Zilcha (1994), “The Effects of Compulsory Schooling on Growth, Income Distribution and Welfare”, Journal of Public Economics, Vol.54, pp.339-359.
[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.
[5] Judd, K.L.(1999), “Optimal Taxation and Spending in General Competitive Growth Models”, Journal of Public Economics, Vol.71, pp.1-26.
[6] Kitaura, K and M. Shirai (2012), “Researches in Higher Education Institutes and Economic Growth”, in Shirai M, K. Kamata and M. Yuda eds., Public Economics Studies V, Keisou Shobou (in Japanese) .
[7] Lucas, R.E. (1988), “On the Mechanics of Economic Development”, Journal of Monetary Economics, Vol.22, pp.3-42.
[8] Ministry of Education, Culture, Sports, Science and Technology-JAPAN(2013), Recent Trends in Education Overseas, Akashi Shoten (in Japanese) .
[9] Romer, P.M. (1990), “Endogenous Technological Change”, Journal of Political Economy, Vol.98, No.5, pp.S71-S102.
[10] Zhang, J.(1996), “Optimal Public Investments in Education and Endogenous Growth”, Scandinavian Journal of Economics, Vol.98, pp.387-404.
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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

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    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

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    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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  • @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}
    }
    

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  • 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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Author Information
  • Faculty of Economics, Chukyo University, 101-2, Yagotohonmachi, Showa, Nagoya, 466-8666, Japan

  • Faculty of Economics, Chukyo University, 101-2, Yagotohonmachi, Showa, Nagoya, 466-8666, Japan

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