Growth and distribution effects of education policy in an endogenous growth model with human capital accumulation

Introduction Endogenous growth theory suggests that government policy is able to play a fundamental role in the economic growth process through its influence on factors determining the long-term rate of growth. Major determinants of economic growth under discussion are e.g. investment or saving rate, population growth, human capital and income distribution (for an overview see Levine and Renelt 1992).