A MODEL WITH KNOWLEDGE EXTERNALITIES AND EDUCATIONAL POLICY

Vasilev, Aleksandar (2021) A MODEL WITH KNOWLEDGE EXTERNALITIES AND EDUCATIONAL POLICY. Theoretical and Practical Research in the Economic Fields, 12 (1). pp. 39-41. ISSN 2068-7710

Full content URL: https://doi.org/10.14505//tpref.v12.1(23).05

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A MODEL WITH KNOWLEDGE EXTERNALITIES AND EDUCATIONAL POLICY
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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 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.

Keywords:knowledge externalities, educational policy
Subjects:L Social studies > L130 Macroeconomics
Divisions:Lincoln International Business School
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ID Code:46890
Deposited On:12 Oct 2021 09:14

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