The aim of this paper is to discuss the process of regional
convergence within the framework of an overlapping generations
model in which the engine of growth is the accumulation of human
capital. In particular, we consider different education funding
systems and compare their performance in terms of growth rates and
pace of convergence between two heterogeneous regions. The analysis
suggests that the choice of a particular education system
incorporates a possible trade-off between long run growth rate and
short run convergence. In such choice, the initial capital stock
and the extent of regional human capital discrepancy appear as
central variables