Economics Division Seminar Series

Credit constraints, human capital investment and intergenerational altruism

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Credit constraints, human capital investment and intergenerational altruismDr Michael Hatcher, University of Southampton

  • From: Wednesday 30 November 2016, 1.30 pm
  • To: Wednesday 30 November 2016, 3.30 pm
  • Location: 115, Arkwright building, Nottingham Trent University, City Campus, Shakespeare Street, Nottingham, NG1 5LT

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Event details

Credit constraints, human capital investment and intergenerational altruism

Dr Michael Hatcher, University of Southampton

Abstract

In most economies, well-developed credit markets for financing educational investments do not exist. We investigate the extent to which these missing markets can be compensated for by in-family transfers. Using an overlapping generations model with transfers from parents to children, we show that the absence of credit markets need not lower economic growth or imply that physical and human capital accumulation are dynamically inefficient. These results suggest that the absence of well-developed credit markets may not hinder efficiency and economic growth, contrary to conventional wisdom. The predictions of the model will be assessed using data.

About the author

Dr Michael Hatcher is Lecturer in Economics within Social Sciences at the University of Southampton. Michael joined Southampton as a Lecturer in September 2014. He holds a PhD in Economics from Cardiff University and was ESRC Postdoctoral Fellow at the University of Glasgow. Prior to that, he taught economics for a year at the University of Oxford. Michael’s research interests are in the area of macroeconomic policy in general equilibrium models, with a focus on monetary policy, government debt, pensions and housing markets.

Booking information

To book your place please email Chunping Liu.

Location details

Room/Building:

115, Arkwright building

Address:

Nottingham Trent University
City Campus
Shakespeare Street
Nottingham
NG1 5LT

Past event

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