Parental altruism, missing credit markets and growth

Arbeitspapier

Parental transfers towards the education of children are non-trivial, especially in countries, characterized by both imperfect credit markets and high economic growth rates. In this paper, we analyze the role of parental altruism on economic growth and dynamic efficiency, especially when credit markets for education loans are missing. We demonstrate conditions under which missing or imperfect credit markets increase economic growth and do not hinder dynamic efficiency. We also show that a newly constructed index of parental altruism, orthogonal to income effects, exhibits high cross-country correlations with model-implied measures of parental altruism at different levels of credit market development.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: Cardiff Economics Working Papers ; No. E2018/26

Classification and Topics

• Classification: Wirtschaft ; Education and Economic Development ; Economic Development: Financial Markets; Saving and Capital Investment; Corporate Finance and Governance ; One, Two, and Multisector Growth Models
• Subject: Education ; Human Capital ; Credit Constraints ; Growth

Contributors, Location and Time

• Event: Geistige Schöpfung
• (who): Hatcher, Michael ; Pourpourides, Panayiotis M.
• Event: Veröffentlichung
• (who): Cardiff University, Cardiff Business School
• (where): Cardiff
• (when): 2018

Further information

• Handle: http://hdl.handle.net/10419/230432
• Last update: 12.07.2024, 1:22 PM CEST