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Weiguang Liu
''Education arms race, fertility rate and education inflation''
( 2019, Vol. 39 No.2 )
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.
Keywords: education arms race, fertility rate, education inflation
JEL: I2 - Education: General
D1 - Household Behavior: General
Manuscript Received : Jul 31 2018 Manuscript Accepted : Apr 25 2019

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