A MODEL WITH KNOWLEDGE EXTERNALITIES AND EDUCATIONAL POLICY

  • Aleksandar VASILEV University of Lincoln, UK

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.

References

Vasilev, A. Z. 2017 Notes on Endogenous Growth Models, EconStor Research Reports 149876, ZBW - Leibniz Information Centre for Economics
Published
2021-07-03
How to Cite
VASILEV, Aleksandar. A MODEL WITH KNOWLEDGE EXTERNALITIES AND EDUCATIONAL POLICY. Theoretical and Practical Research in the Economic Fields, [S.l.], v. 12, n. 1, p. 39-41, july 2021. ISSN 2068-7710. Available at: <https://journals.aserspublishing.eu/tpref/article/view/6220>. Date accessed: 23 sep. 2021. doi: https://doi.org/10.14505//tpref.v12.1(23).05.