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, doi: 10.1007/s10887-011-9062-5. Attached Files Name Description MIMEType Size Downloads Title Parental nurturing and adverse effects of redistribution Author(s) Bandyopadhyay, Debasis Tang, Xueli orcid.org/0000-0002-7408-4054 Journal name Journal of economic growth Volume number 16 Issue number 1 Start page 71 End page 98 Total pages 28 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 DOI 10.1007/s10887-011-9062-5 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 2018 ERA Submission Related Links Link Description Connect to published version (restricted access) Go to link with your DU access privileges     Unless expressly stated otherwise, the copyright for items in DRO is owned by the author, with all rights reserved. Versions Version Filter Type Tue, 24 May 2011, 16:45:23 EST Wed, 25 May 2011, 09:20:12 EST Wed, 25 May 2011, 09:26:22 EST Wed, 25 May 2011, 10:22:40 EST Wed, 22 Jun 2011, 16:25:12 EST Wed, 22 Jun 2011, 16:26:36 EST Thu, 23 Jun 2011, 16:49:20 EST Mon, 16 Jan 2012, 10:19:23 EST Mon, 16 Jan 2012, 10:20:50 EST Tue, 03 Feb 2015, 12:47:25 EST Filtered Full Citation counts:   Cited 7 times in TR Web of Science Cited 7 times in Scopus Search Google Scholar Access Statistics: 757 Abstract Views, 18 File Downloads  -  Detailed Statistics Created: Tue, 24 May 2011, 16:45:17 EST by Katrina Fleming