This paper studies investment in health and education in a life-cycle model. Health investment enhances survival to old age by improving health from its endowed level. The model predicts two distinctive phases of development. When income is low enough, the economy has no health investment and...

This paper analyzes a dual economy consisting of urban market areas and less developed rural areas with or without local markets. Urban areas have better opportunities for earnings and education than rural areas. Rural families choose whether to move to urban areas at costs that differ from...

China?s open-door policy has attracted foreign investment to China. The foreign direct investment is unequally distributed in Chinese thirty regions. The regions can be grouped after different critiria: the coastal area, the central area and the western area by geographical critirion, or...

LINE model is an interregional macroeconomic model describing the economy of the 275 Danish municipalities. Tourism sub-model is an integrated part of LINE model, where tourism data are built in as a part of private consumption. The purpose of building tourism sub-model within the LINE model is...

We construct a simple growth model where agents with uncertain survival choose schooling time, life-cycle consumption and the number of children. We show that rising longevity reduces fertility but raises saving, schooling time and the growth rate at a diminishing rate. Cross-section analyses...

Optimal public investments in human capital through subsidizing private education or providing public education are considered in an endogenous growth model with externalities. Subsidizing private education stimulates growth, improves welfare, and has no distributional effect. While reducing...