Public investment in basic education and economic growth
AbstractPurpose – The main purpose of this paper is to visualize the relation between government spending on basic education and the human capital accumulation process, observing the impacts of this spending on individual investments in higher education, and on economic growth. Design/methodology/approach – The paper uses an overlapping-generations model where the government tax the adult generation and spent it in basic education of the next generations. Findings – It was demonstrated that the magnitude of the marginal effect of government spending in basic education on growth crucially depends on public budget constrains. Originality/value – The paper explains why some countries with a lot of public investment in basic education growth at low rates. In that sense if a country has only a lot of public investment in basic education without investment in higher education it may growth at low rates because the taxation can cause distortions in the agents incentives to invest in higher education.
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Bibliographic InfoArticle provided by Emerald Group Publishing in its journal Journal of Economic Studies.
Volume (Year): 35 (2008)
Issue (Month): 4 (July)
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Other versions of this item:
- Vladimir Kühl Teles & Joaquim P. Andrade, 2004. "Public Investment In Basic Education And Economic Growth," Anais do XXXII Encontro Nacional de Economia [Proceedings of the 32th Brazilian Economics Meeting] 040, ANPEC - Associação Nacional dos Centros de Pósgraduação em Economia [Brazilian Association of Graduate Programs in Economics].
- Teles, Vladimir Kuhl & Andrade, Joaquim Pinto de, 2010. "Public investment in basic education and economic growth," Textos para discussÃ£o 230, Escola de Economia de São Paulo, Getulio Vargas Foundation (Brazil).
- O11 - Economic Development, Technological Change, and Growth - - Economic Development - - - Macroeconomic Analyses of Economic Development
- O23 - Economic Development, Technological Change, and Growth - - Development Planning and Policy - - - Fiscal and Monetary Policy in Development
- I28 - Health, Education, and Welfare - - Education - - - Government Policy
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