An optimal education subsidy formula is derived using an overlapping generations model with parental altruism. The … model predicts that public education subsidy is greater in economies with lesser parental altruism because a benevolent … the other hand, growth is higher in economies with greater parental altruism. Cross-country regressions using the World …

imperfect credit markets and high economic growth rates. In this paper, we analyze the role of parental altruism on economic … that a newly constructed index of parental altruism, orthogonal to income effects, exhibits high cross-country correlations … with model-implied measures of parental altruism at different levels of credit market development. …