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| Weiguang Liu |
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| ''Education arms race, fertility rate and education inflation'' |
| ( 2019, Vol. 39 No.2 ) |
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| There are many reasons behind the education inflation. I tried to explain it in two aspects. First, every individual family has an incentive to occupy a higher status in the education hierarchy for honor, which means there is a zero-sum education arms race game. Second, the low fertility rate intensifies the education arms race because it deprives parents of other options. The extreme case is China's one-child policy. I built a behavioral economic model based on Veblen's basic thoughts to explained how these two factors intertwine with each other and contribute to education inflation. |
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| Keywords: education arms race, fertility rate, education inflation |
JEL: I2 - Education: General
D1 - Household Behavior: General |
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| Manuscript Received : Jul 31 2018 | | Manuscript Accepted : Apr 25 2019 |
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