Private versus public financing of education and endogenous growth
AbstractThis paper examines interactions between education policy and growth. The analysis is carried out in an OLG model with two types of individuals: skilled and unskilled. An increase in public education reduces private costs of education, increases the proportion of skilled individuals, and tends to promote growth. On the other hand, education spending crowds out physical capital and reduces learning-by-doing. A marginal increase in the education subsidy can lower growth. It is yet shown that pure public education maximizes the long-run growth rate. Importantly, a partial subsidy to education can result in lower growth than pure private education.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
Bibliographic InfoArticle provided by Springer in its journal Journal of Population Economics.
Volume (Year): 13 (2000)
Issue (Month): 3 ()
Note: Received: 7 March 1999/Accepted: 25 November 1999
Contact details of provider:
Web page: http://link.springer.de/link/service/journals/00148/index.htm
More information through EDIRC
Other versions of this item:
- Braeuninger, M. & Vidal, J.-P., 1999. "Private Versus Public Financing of Education and Endogenous Growth," G.R.E.Q.A.M. 99a11, Universite Aix-Marseille III.
- E10 - Macroeconomics and Monetary Economics - - General Aggregative Models - - - General
- O40 - Economic Development, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - General
- O41 - Economic Development, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - One, Two, and Multisector Growth Models
- F43 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - Economic Growth of Open Economies
You can help add them by filling out this form.
CitEc Project, subscribe to its RSS feed for this item.
- Günther Rehme, 2007.
"Education, Economic Growth and Measured Income Inequality,"
London School of Economics and Political Science, vol. 74(295), pages 493-514, 08.
- Rehme, Günther, 2006. "Education, Economic Growth and Measured Income Inequality," Darmstadt Discussion Papers in Economics 25519, Darmstadt Technical University, Department of Business Administration, Economics and Law, Institute of Economics (VWL).
- Blankenau, William, 2005. "Public schooling, college subsidies and growth," Journal of Economic Dynamics and Control, Elsevier, vol. 29(3), pages 487-507, March.
- Arcalean, Calin & Schiopu, Ioana, 2010. "Public versus private investment and growth in a hierarchical education system," Journal of Economic Dynamics and Control, Elsevier, vol. 34(4), pages 604-622, April.
- 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].
- Vladimir Kuhl Teles & Joaquim Andrade, 2008. "Public investment in basic education and economic growth," Journal of Economic Studies, Emerald Group Publishing, vol. 35(4), pages 352-364, July.
- 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).
- L. Marattin, 2007. "Optimal Fiscal Policy with Private and Public Investment in Education," Working Papers 589, Dipartimento Scienze Economiche, Universita' di Bologna.
- Mauricio Armellini & Parantap Basu, 2011.
"Altruism, Education Subsidy and Growth,"
2011_07, Durham University Business School.
- Mauricio Armellini & Parantap Basu, 2010. "Altruism, Education Subsidy and Growth," EERI Research Paper Series EERI_RP_2010_21, Economics and Econometrics Research Institute (EERI), Brussels.
- Armellini, Mauricio & Basu, Parantap, 2010. "Altrusim. Education Subsidy and Growth," MPRA Paper 23653, University Library of Munich, Germany.
- Nakajima, Tetsuya & Nakamura, Hideki, 2012. "How Do Elementary And Higher Education Affect Human Capital Accumulation And Inequality? A Note," Macroeconomic Dynamics, Cambridge University Press, vol. 16(01), pages 151-158, February.
- Verbic, Miroslav & Majcen, Boris & Cok, Mitja, 2009. "Education and Economic Growth in Slovenia: A Dynamic General Equilibrium Approach with Endogenous Growth," MPRA Paper 17817, University Library of Munich, Germany.
- repec:ebl:ecbull:v:9:y:2005:i:10:p:1-6 is not listed on IDEAS
- Leonid Azarnert, 2010. "Free education, fertility and human capital accumulation," Journal of Population Economics, Springer, vol. 23(2), pages 449-468, March.
- Luís Francisco Aguiar-Conraria, 2004. "Public vs Private Schooling in an Endogenous Growth Model," NIPE Working Papers 7/2004, NIPE - Universidade do Minho.
- Luís Aguiar-Conraria, 2005. "Public vs private schooling in an endogenous growth model," Economics Bulletin, AccessEcon, vol. 9(10), pages 1-6.
- repec:dar:vpaper:25519 is not listed on IDEAS
- Nakajima, Tetsuya & Nakamura, Hideki, 2009. "The price of education and inequality," Economics Letters, Elsevier, vol. 105(2), pages 183-185, November.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Guenther Eichhorn) or (Christopher F Baum).
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.