All Rights Reserved
AccessEcon LLC 2006, 2008.
Powered by MinhViet JSC
ralph lauren polo

 
Minoru Watanabe and Masaya Yasuoka
 
''Income growth, inequality and preference for education investment: a note''
( 2009, Vol. 29 No.4 )
 
 
Based on Glomm and Ravikumar (1992), this paper described the relation between preferences for educational investment for children and income growth or income inequality. The result derived using the constant relative risk aversion (CRRA) utility function differs from that derived using the log utility function. With the CRRA utility function, even if human capital is produced using constant returns to scale inputted by educational investment and parental human capital, the income converges to the steady state and income inequality vanishes in the long run, which is not derived by the log utility function.
 
 
Keywords: Educational investment, Income growth, Income inequality
JEL: I2 - Education: General
O1 - Economic Development: General
 
Manuscript Received : Nov 26 2009 Manuscript Accepted : Dec 09 2009

  This abstract has been downloaded 261 times                The Full PDF of this paper has been downloaded 87720 times