Study Guide 1

Iftwonationsdifferonlywithrespecttohumancapitalthe

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Unformatted text preview: hild Mortality ii. Income vs. Substitution Effects iii. Resource Flows between Generations iv. Quality vs. Quantity e. Negative Population Growth i. If unplanned for, depopulation 1. Increases debt burdens on future generations 2. Makes the care for aging population more difficult IV. Chapter 6: Human Capital a. Education i. Individual’s Choice of Education 1. Private Costs vs. Private Benefits 2. Costs and Benefits differ across countries 3. The problem of uncertainty 4. The problem with parents ii. Human Capital and the Solow Model 1. Human Capital makes Labor more productive 2. If two nations differ only with respect to human capital, the country with higher human capital will also enjoy higher income per capita. iii. Differences in the Quality of Education 1. Due to differences in the quality of education we are likely to underestimate the education gap. iv. Public Benefits of Education (Externalities)...
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This note was uploaded on 12/05/2010 for the course ECON 114 taught by Professor Cindybenelli during the Summer '08 term at UCSB.

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