A model with knowledge externalities and educational policy

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.

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Year of publication:	2021
Authors:	Vasilev, Aleksandar
Published in:	Theoretical and Practical Research in Economic Fields. - Craiova : ASERS Publishing Group, ISSN 2068-7710. - 2021, forthcoming
Publisher:	Craiova : ASERS Publishing Group
Subject:	knowledge spillovers \| externalities \| educational subsidy

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Type of publication:	Article
Type of publication (narrower categories):	Article
Language:	English
Other identifiers:	10.14505/tpref.v12.1(23).05 [DOI] hdl:10419/233515 [Handle] RePEc:zbw:espost:233515 [RePEc]
Classification:	O31 - Innovation and Invention: Processes and Incentives ; O41 - One, Two, and Multisector Growth Models
Source:	EconStor

Persistent link: https://www.econbiz.de/10012504503