In: Ekonomický časopis/Journal of Economics, vol. 62, no. 1
Miroslav Verbič - Boris Majcen - Mitja Čok
Detaily:
Rok, strany: 2014, 19 - 45
Kľúčové slová:
Keywords: education, endogenous growth, general equilibrium modelling, Slovenia
JEL Classification: C68, D58, E24, H52
Typ článku: Vedecký / Article
O článku:
In the article, we model education and human capital as major endogenous growth elements in a small open economy general equilibrium framework and consider several policy scenarios for Slovenia. Decrease of the personal income tax rate and increase of government spending on education turned out to be the most effective policy measures. It is important, though, to understand its transitory dynamic. Namely, as education expenditure is increased, certain amount of labour is temporarily withdrawn from its productive use and put into the educational system. Higher skill upgrade of labour requires longer and higher short-term labour force decrease, but also provides us with higher long-term growth. The households that would gain more utility from such policy scenarios are those with more skilled labour and thus higher income level.
In the article, we model education and human capital as major endogenous growth elements in a small open economy general equilibrium framework and consider several policy scenarios for Slovenia. Decrease of the personal income tax rate and increase of government spending on education turned out to be the most effective policy measures. It is important, though, to understand its transitory dynamic. Namely, as education expenditure is increased, certain amount of labour is temporarily withdrawn from its productive use and put into the educational system. Higher skill upgrade of labour requires longer and higher short-term labour force decrease, but also provides us with higher long-term growth. The households that would gain more utility from such policy scenarios are those with more skilled labour and thus higher income level.
Ako citovať:
ISO 690:
Verbič, M., Majcen, B., Čok, M. 2014. Education and Economic Growth in Slovenia: A Dynamic General Equilibrium Approach with Endogenous Growth. In Ekonomický časopis/Journal of Economics, vol. 62, no.1, pp. 19-45. 0013-3035.
APA:
Verbič, M., Majcen, B., Čok, M. (2014). Education and Economic Growth in Slovenia: A Dynamic General Equilibrium Approach with Endogenous Growth. Ekonomický časopis/Journal of Economics, 62(1), 19-45. 0013-3035.