Recent theories of economic growth have stressed the role of human capital in generation growth. Education plays a major role in enhancing the formation of human capital.
The purpose of this paper is to analyze the education demand of families with d...
Recent theories of economic growth have stressed the role of human capital in generation growth. Education plays a major role in enhancing the formation of human capital.
The purpose of this paper is to analyze the education demand of families with different socioeconomic characteristics by including lifecycle variables explicitly in the family's maximization problem. The quality of children is included in the utility of the household head. with a production function for quality in which education expenditure and housing enter.
The main theme of the model is that parents care about their children and that education expenditure and housing are inputs to increase the quality of their children. The causal role of socioeconomic variables in explaining demand is explained.
Korea's household expenditure on education is growing very rapidly. Understanding the role of education expenditure and housing can enhance the capability of prediction future economic growth.