Why and How Should the Government Subsidize Education?
Why and How Should the Government Subsidize Education?
October 6, 2015
Human Capital Model
To keep things simple and flexible, lets use the following version of the human capital model 2 periods
everyone goes to school in the first works in the second
Can buy school quality
Lets call this q as a shorthand for (I0) We will also ignore initial human capital
Then human in period 2 are just h(q)
where as before
h (q) > 0 q
2h (q) q2 < 0
Thus we can write the problem as
Max u (C0) + u (C1)
subject to budget constraint
1
1
C0 + 1 + r C1 -q + 1 + r R1h (q)
Solving for first order conditions we get
h (q) 1 + r = R1 q
Government Involvement
Think about this human capital model. People got a personal benefit from investing in human capital They choose to invest to maximize their present value of earnings
................
................
In order to avoid copyright disputes, this page is only a partial summary.
To fulfill the demand for quickly locating and searching documents.
It is intelligent file search solution for home and business.
Related download
- university of the people course registration guide
- guide to transition further and higher education
- why does the universe exist harvard university
- why and how should the government subsidize education
- why are colleges and universities new york
- college and university should be free for all canadians
- the economics of free college economics for
- learning outcomes los angeles mission college
- teacher toolboxpro 2
- sample of personal essay s for grad school application
Related searches
- why not everyone should go to college
- why and how questions
- why college tuition should be free
- why college tuition should not be free
- answering why and how questions
- should the government be involved in economy
- the government and the economy
- why is the government necessary
- why is the government important
- should the government regulate businesses
- how does the government get taxes
- should the government intervene in economy