Impact of R&D growth model with public and private education on income and population growth

ABSTRACT

This paper analyses an R&D-based growth model that presents an empirically plausible relationship between population growth and income growth for in particular developed countries. The paper shows that in the presence of highly productive education, a decrease in population growth accelerates income growth even though public education sectors are not well developed.

KEYWORDS:

• R&D-based growth model
• human capital
• population growth
• public education
• private education

JEL CLASSIFICATION:

• J24
• B22

Acknowledgments

I would like to thank Kazutoshi Miyazawa, Koichi Yotsuya, Kazuo Mino, Koichi Futagami, Akira Kobashi, Takeshi Momi, Yoshiaki Azuma, Tomoyuki Kamo, Daishin Yasui, Syuhei Takahashi, Tadashi Yagi, Sayaka Sakoda, Takumi Motoyama, Miho Sunaga, Ryosuke Shimizu, Yuki Saito and seminar participants in Kyoto university and Osaka university for helpful comments. Any remaining errors are, of course, my own.

Disclosure statement

No potential conflict of interest was reported by the author.

Notes

¹ We consider this assumption is appropriate because one generation is long enough.

² We assume parental education rises at the same rate to their wage income, because a rise in wage income and public education needs an increase in private education to keep up in class.