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Treball de fi de màster

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cc-by-nc-nd (c) Wan, 2024
Si us plau utilitzeu sempre aquest identificador per citar o enllaçar aquest document: https://hdl.handle.net/2445/214811

The Effects of Education Subsidy in an R&D Based Economy

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This paper aims to study the effects of education subsidies in an R&D-based economy. I develop a Schumpeterian growth model that incorporates both variety innovations and quality improvements, with endogenous population growth and the accumulation of human capital. The results show that the effects of education subsidy policy may be contrary to its intended objectives. Specifically, it hinders long-term economic growth when the population growth rate is constant or decreases with the education subsidy. This occurs because the subsidy expands variety innovation but impedes quality improvements, and also reduces the value of the quality-adjusted market size of intermediate goods, which determines the long-term economic growth rate. However, the effects become ambiguous if the population growth rate increases with the education subsidy, which tends to reduce or even reversing the subsidy’s impact.

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Treballs Finals del Màster d'Economia, Facultat d'Economia i Empresa, Universitat de Barcelona. Curs: 2023-2024, Tutor: Xavier Raurich

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Citació

WAN, Hansi. The Effects of Education Subsidy in an R&D Based Economy. [consulta: 24 de novembre de 2025]. [Disponible a: https://hdl.handle.net/2445/214811]

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