Parental nurturing and adverse effects of redistribution

Bandyopadhyay, Debasis and Tang, Xueli 2011, Parental nurturing and adverse effects of redistribution, Journal of economic growth, vol. 16, no. 1, pp. 71-98.

Attached Files
Name Description MIMEType Size Downloads

Title Parental nurturing and adverse effects of redistribution
Author(s) Bandyopadhyay, Debasis
Tang, Xueli
Journal name Journal of economic growth
Volume number 16
Issue number 1
Start page 71
End page 98
Publisher Springer
Place of publication Secaucus, N.J.
Publication date 2011-03
ISSN 1381-4338
Keyword(s) Heterogeneous ability
Parental input in education
Endogenous growth
Dynamic efficiency
Progressive income tax
Progressive education subsidy
Summary This paper suggests that if parental nurturing is a dominating force in human capital formation then income redistribution may not promote economic growth. In particular, if, consistently with empirical evidence, parental human capital complements investment in a child’s education and yields increasing returns in the intergenerational production of human capital, income redistribution may have an adverse impact on the growth rate of average human capital. Redistribution shifts resources towards the less educationally-productive families and thus in the presence of credit markets imperfections and increasing returns, it reduces the aggregate level of investment in human capital. Moreover, if the degree of increasing returns is sufficiently large to produce sustained growth, this adverse effect on human capital formation may outweigh the conventional beneficial effects of redistribution that arises from the interaction between a production technology exhibiting diminishing returns and credit market imperfections.
Language eng
Field of Research 140102 Macroeconomic Theory
Socio Economic Objective 910199 Macroeconomics not elsewhere classified
HERDC Research category C1 Refereed article in a scholarly journal
HERDC collection year 2011
Copyright notice ©2011, Springer Science+Business Media, LLC 2011h
Persistent URL http://hdl.handle.net/10536/DRO/DU:30034670

Document type: Journal Article
Collections: Faculty of Business and Law
School of Accounting, Economics and Finance
Connect to link resolver
 
Unless expressly stated otherwise, the copyright for items in DRO is owned by the author, with all rights reserved.

Versions
Version Filter Type
Citation counts: TR Web of Science Citation Count  Cited 0 times in TR Web of Science
Google Scholar Search Google Scholar
Access Statistics: 103 Abstract Views, 2 File Downloads  -  Detailed Statistics
Created: Tue, 24 May 2011, 16:45:17 EST by Katrina Fleming

Every reasonable effort has been made to ensure that permission has been obtained for items included in DRO. If you believe that your rights have been infringed by this repository, please contact drosupport@deakin.edu.au.