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Transitional dynamics of the R&D growth model with public education
Author(s) -
Hirono Makoto
Publication year - 2020
Publication title -
metroeconomica
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.256
H-Index - 29
eISSN - 1467-999X
pISSN - 0026-1386
DOI - 10.1111/meca.12296
Subject(s) - prosperity , economics , public education , dynamics (music) , path (computing) , value (mathematics) , population , population growth , oscillation (cell signaling) , econometrics , macroeconomics , economic growth , mathematics , physics , sociology , chemistry , statistics , demography , computer science , acoustics , programming language , biochemistry
This study analyzes the transition dynamics of the R&D‐based growth model with public education, based on [Prettner, K. (2014). The non‐monotonous impact of population growth on economic prosperity. Economics Letters , 124, 93–95]. We show that the equilibrium path can be monotonous or oscillatory, but may not converge depending on the value of parameters. Thus, we determine and indicate the sufficient condition for long‐run oscillation to emerge. In addition, we find that the technological progress rate speeds up during the long‐run balanced growth path when income tax rates for public education rise. This result is consistent with empirical analysis.