“Optimal accumulation in an endogenous growth setting with human capital”

“This paper considers a three-overlapping-generations model of endogenous growth wherein human capital is the engine of growth. It first contrasts the «laissez-faire» and the optimal solutions. Three possible accumulation regimes are distinguished. Then it discusses a standard set of tax-transfer instruments that allow for decentralization of the social optimum. Within the limits of our model, the rationale for the standard pattern of intergenerational transfers (the working-aged financing the education of the young and the pension of the old) is seriously questioned. On pure efficiency grounds, the case for generous public pensions is rather weak.”

Frédéric DOCQUIER (UNIVERSITE CATHOLIQUE DE LOUVAIN, Department of Economics);
Oliver PADDISON,

Pirre PESTIEAU [UNIVERSITE CATHOLIQUE DE LOUVAIN, Center for Operations Research and Econometrics (CORE)]

Keywords: Endogenous growth, human capital, intergenerational transfers

Date: 2006-05-15

URL: http://d.repec.org/n?u=RePEc:ctl:louvec:2006022&r=edu

(resumo de “paper”, disponível no sítio referenciado)