The University of Southampton
×
Filter your search:
University of Southampton Institutional Repository

Education, borrowing constraints and growth: A note

Education, borrowing constraints and growth: A note
Education, borrowing constraints and growth: A note
Kitaura (2012) shows an inverse U-shape relationship between balanced growth and the tightness of educational borrowing constraints and argues that a loosening of constraints need not be Pareto-improving even if growth increases. We provide a careful analysis of the transition, showing that an unanticipated loosening of credit constraints is welfare-improving for initial generations, but may be detrimental to (some) subsequent generations when growth increases. Thus, we argue that governments concerned with re-election may support a loosening of credit at the expense of future generations.
Education, Borrowing constraints, Economic growth, Welfar
0165-1765
Hatcher, Michael
e0846252-6d46-44f8-ba3c-05cf1fba64ab
Hatcher, Michael
e0846252-6d46-44f8-ba3c-05cf1fba64ab

Hatcher, Michael (2022) Education, borrowing constraints and growth: A note. Economics Letters, 212 (March 2022), [110274]. (doi:10.1016/j.econlet.2022.110274).

Record type: Article

Abstract

Kitaura (2012) shows an inverse U-shape relationship between balanced growth and the tightness of educational borrowing constraints and argues that a loosening of constraints need not be Pareto-improving even if growth increases. We provide a careful analysis of the transition, showing that an unanticipated loosening of credit constraints is welfare-improving for initial generations, but may be detrimental to (some) subsequent generations when growth increases. Thus, we argue that governments concerned with re-election may support a loosening of credit at the expense of future generations.

Text
Hatcher_EL_2022 - Accepted Manuscript
Available under License Creative Commons Attribution Non-commercial No Derivatives.
Download (280kB)

More information

Accepted/In Press date: 13 January 2022
Published date: March 2022
Additional Information: Publisher Copyright: © 2022 Elsevier B.V. Copyright: Copyright 2022 Elsevier B.V., All rights reserved.
Keywords: Education, Borrowing constraints, Economic growth, Welfar

Identifiers

Local EPrints ID: 454151
URI: http://eprints.soton.ac.uk/id/eprint/454151
DOI: doi:10.1016/j.econlet.2022.110274
ISSN: 0165-1765
PURE UUID: 49c56b75-96e4-412d-84c2-e39a943fcb3e
ORCID for Michael Hatcher: ORCID iD orcid.org/0000-0001-8506-1950

Catalogue record

Date deposited: 01 Feb 2022 17:43
Last modified: 17 Mar 2024 07:04

Export record

Altmetrics

Contributors

Author: Michael Hatcher ORCID iD

Download statistics

Downloads from ePrints over the past year. Other digital versions may also be available to download e.g. from the publisher's website.

View more statistics

Library staff additional information
Atom RSS 1.0 RSS 2.0

Contact ePrints Soton: eprints@soton.ac.uk

ePrints Soton supports OAI 2.0 with a base URL of http://eprints.soton.ac.uk/cgi/oai2

This repository has been built using EPrints software, developed at the University of Southampton, but available to everyone to use.

We use cookies to ensure that we give you the best experience on our website. If you continue without changing your settings, we will assume that you are happy to receive cookies on the University of Southampton website.

×