Kan utbildningssubventioner främja ekonomisk tillväxt? - En simuleringsstudie om USA:s framtida tillväxtscenarion

Sammanfattning: In the last decades, the impact of human capital on growth has played a central role. College tuition in the U.S. is among the highest in the world and deters otherwise capable and enthusiastic students from seeking higher education. This thesis investigates the effect of education subsidies on the highest levels of education in the U.S by performing a simulation with different financial strategies. A variation of the Lucas Growth Model is used to demonstrate the anticipated effects of education subsidies. The deviations made include a budget constraint, individuals’ behavioral change after a tax raise, and dividing individuals into different groups based on their ability to attend college. Based on these traits, subjects can be fit in to three different categories that determine how likely they are to gain from such subsidies. The results demonstrate that higher education subsidies in the U.S., that either aim to improve the quality of schools or that stimulates students to seek college education, will increase economic growth in the long run.