Schooling, Risk Attitude and Growth(Okullaşma, Risk Alma Eğilimi ve Büyüme)

• Main Authors: Jinyoung HWANG, Sacit Hadi AKDEDE
• Format: Article
• Language: deu
• Published: Celal Bayar University 2006-01-01
• Series: Yönetim ve Ekonomi
• Subjects: Growth; Human Capital; Investment; Risk Attitude; Büyüme; Beşeri Sermaye; Yatırım; Risk Alma
• Online Access: http://www2.bayar.edu.tr/yonetimekonomi/dergi/pdf/C13S22006/JHSHA.pdf

This paper tries to provide a mechanism between risk attitude (or simple curvature of utility function) on schooling and the economic growth path. Schooling or education is used as an example of investment that may depend on the risk attitude of economic agents. The main findings are as follows: (i) an increasing rate of risk aversion implies a decreasing rate of growth; (ii) a constant rate of risk aversion means that there exists at least one steady state growth path; and (iii) a decreasing rate of risk aversion implies that there is an upper bound on the growth rate within one generation.