Sustainability of public debt under physical and human capital accumulation in an overlapping generations model

2018 ◽  
Vol 127 (1) ◽  
pp. 19-45 ◽  
Author(s):  
Takumi Motoyama
Keyword(s):  
Human Capital ◽  
Public Debt ◽  
Capital Accumulation ◽  
Overlapping Generations ◽  
Human Capital Accumulation ◽  
Overlapping Generations Model ◽  
Sustainability Of Public Debt

scholarly journals THE GREAT TRANSITION: IMPLICATIONS FROM ENVIRONMENTAL POLICY FOR THE QUALITY–QUANTITY TRADE-OFF IN CHILDREN-REARING

2018 ◽  
Vol 63 (05) ◽  
pp. 1155-1174
Author(s):  
FREDERIC TOURNEMAINE ◽  
CHRISTOPHER TSOUKIS
Keyword(s):  
Human Capital ◽  
Environmental Policy ◽  
Capital Accumulation ◽  
Overlapping Generations ◽  
Poverty Trap ◽  
Human Capital Accumulation ◽  
Endogenous Fertility ◽  
Overlapping Generations Model ◽  
Trade Off ◽  
Great Transition

We develop an overlapping-generations model with human capital accumulation and endogenous fertility containing a pollution externality. We study the effects of an environmental policy on individuals’ quality–quantity trade-off on children. In a Malthusian poverty trap, we show that a more stringent policy induces a reduction of fertility. In a state of perpetual development, we find a similar result and show that higher environmental quality, growth and welfare are compatible goals. Moreover, we show that the policy can be used as an instrument for initiating a country’s great transition from a state of poverty to a state of development.

scholarly journals ENVIRONMENTAL POLICY, EDUCATION AND GROWTH: A REAPPRAISAL WHEN LIFETIME IS FINITE

2011 ◽  
Vol 16 (5) ◽  
pp. 661-685 ◽  
Author(s):  
Xavier Pautrel
Keyword(s):  
Human Capital ◽  
Environmental Policy ◽  
Capital Accumulation ◽  
Overlapping Generations ◽  
Monetary Economics ◽  
Physical Capital ◽  
Positive Influence ◽  
Overlapping Generations Model ◽  
Final Output ◽  
Source Of Pollution

When finite lifetime is introduced in a Lucas [Journal of Monetary Economics 22 (1988), 3–42] growth model where the source of pollution is physical capital, the environmental policy may enhance the growth rate of a market economy, whereas pollution does not influence educational activities, labor supply is not elastic, and human capital does not enter the utility function. The result arises from the generational turnover effect due to finite lifetime and it remains valid under conditions when the education sector uses final output as well as time to accumulate human capital. This article also demonstrates that ageing reduces the positive influence of environmental policy when growth is driven by human capital accumulation à la Lucas in the overlapping-generations model of Yaari [Review of Economic Studies 32 (1965), 137–150] and Blanchard [Journal of Political Economy 93 (1985), 223–247].

A NOTE ON CREDIT MARKET DEVELOPMENT AND HUMAN CAPITAL ACCUMULATION

2013 ◽  
Vol 17 (7) ◽  
pp. 1525-1541 ◽  
Author(s):  
Wai-Hong Ho
Keyword(s):  
Human Capital ◽  
Capital Accumulation ◽  
Overlapping Generations ◽  
Credit Market ◽  
Market Development ◽  
Human Capital Accumulation ◽  
Self Selection ◽  
Selection Equilibrium ◽  
Cross Country ◽  
The Cost

This paper explores the interplay between credit market development and human capital accumulation in a two-period overlapping-generations economy with asymmetric information under the assumption that young lenders channel credits to young borrowers and acquire education. We find that, at the self-selection equilibrium, lenders will allocate more time to acquire education if the cost of screening borrowers falls. Furthermore, a longer duration of lenders' schooling time suppresses borrowers' incentive to cheat thereby enabling lenders to screen less frequently. Our preliminary cross-country empirical analysis appears to support these findings.

scholarly journals Stimulating annuity markets

2016 ◽  
Vol 16 (4) ◽  
pp. 554-583
Author(s):  
BEN J. HEIJDRA ◽  
JOCHEN O. MIERAU ◽  
TIMO TRIMBORN
Keyword(s):  
General Equilibrium ◽  
Capital Accumulation ◽  
Overlapping Generations ◽  
Partial Equilibrium ◽  
Human Capital Accumulation ◽  
Overlapping Generations Model ◽  
Long Run ◽  
State Agents ◽  
Annuity Markets ◽  
Stimulation Of

AbstractWe study the short-, medium-, and long-run implications of stimulating annuity markets in a dynamic general-equilibrium overlapping-generations model. We find that beneficial partial-equilibrium effects of stimulating annuity markets are counteracted by negative general-equilibrium repercussions. Balancing the positive partial-equilibrium and negative general-equilibrium forces we show that there exists an intermediate level of annuitization such that the lifetime utility of steady-state agents is maximized. Studying the transition to this optimal degree of annuitization shows that currently middle-aged individuals stand to gain most from the stimulation of annuity markets. Complementing our main analysis, we highlight the centrality of the interplay between human-capital accumulation and annuity market policy.

Human Capital Accumulation and Resource Abundance

2011 ◽  
pp. 66-77
Author(s):  
O. Vasilieva
Keyword(s):  
Economic Growth ◽  
Human Capital ◽  
Capital Accumulation ◽  
Relevant Literature ◽  
Harmful Effect ◽  
Human Capital Accumulation ◽  
Resource Abundance ◽  
Empirical Results ◽  
Theoretical Predictions ◽  
Crowd Out

Does resource abundance positively affect human capital accumulation? Or, alternatively, does it «crowd out» the human capital leading to the deterioration of economic growth? The paper gives an overview of the relevant literature and discusses both theoretical and empirical results obtained regarding the connection between human capital accumulation and resource abundance. It shows that despite some theoretical predictions about the harmful effect of resource abundance on human capital accumulation, unambiguous evidence of such impact that would be robust with respect to the change of resource abundance parameter has not been obtained yet.

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