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Research output: Thesis › Doctoral Thesis
Research output: Thesis › Doctoral Thesis
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TY - BOOK
T1 - Pathways to poverty
T2 - Theoretical and empirical analyses
AU - Embrey, Iain
PY - 2019/12/6
Y1 - 2019/12/6
N2 - The prevalence of poverty in advanced economies represents a challenge,both to economic theory and to society. We know that povertyis perpetuated by low levels of educational investment amongst disadvantagedchildren, but we have no credible theoretical explanation forthe observed degree of that apparent underinvestment, and we have notyet developed sufficient policy tools to break the intergenerational cycleof deprivation. In response, this thesis undertakes theoretical and empiricalanalyses of the pathways that perpetuate poverty. I demonstratethat divergently low educational investment could arise as an equilibriumresponse to a grades-focussed educational system; I develop theexisting state-of-the-art technique in econometric estimation of the educationalproduction function; and I apply that technique to find strongempirical support for my theoretical model. In addition my results showthat the average child’s propensity to think analytically has a substantialinfluence over their developmental pathway, which suggests thatmodels of educational investment should adopt a generalisation of ExpectedUtility Theory that allows agents to maximise one of two possibleobjective functions.
AB - The prevalence of poverty in advanced economies represents a challenge,both to economic theory and to society. We know that povertyis perpetuated by low levels of educational investment amongst disadvantagedchildren, but we have no credible theoretical explanation forthe observed degree of that apparent underinvestment, and we have notyet developed sufficient policy tools to break the intergenerational cycleof deprivation. In response, this thesis undertakes theoretical and empiricalanalyses of the pathways that perpetuate poverty. I demonstratethat divergently low educational investment could arise as an equilibriumresponse to a grades-focussed educational system; I develop theexisting state-of-the-art technique in econometric estimation of the educationalproduction function; and I apply that technique to find strongempirical support for my theoretical model. In addition my results showthat the average child’s propensity to think analytically has a substantialinfluence over their developmental pathway, which suggests thatmodels of educational investment should adopt a generalisation of ExpectedUtility Theory that allows agents to maximise one of two possibleobjective functions.
KW - Education
KW - Human Capital
KW - Poverty
KW - Social Exclusion
KW - Unemployment
KW - Cognitive Development
KW - Noncognitive Skills
KW - Dynamic factor model
KW - Participation Game
KW - Decision Theory
KW - Dual Self
U2 - 10.17635/lancaster/thesis/799
DO - 10.17635/lancaster/thesis/799
M3 - Doctoral Thesis
PB - Lancaster University
ER -