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Public Education Spending, Sectoral Taxation and Growth

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  • Marion Davin

    ()
    (Aix-Marseille University (Aix-Marseille School of Economics), CNRS & EHESS)

Abstract

This paper examines the interplay between public education expenditure and economic growth in a two-sector model. We reveal that agents’ preferences for services, education and savings play a major role in the relationship between growth and public education expenditures, as long as production is taxed at a different rate in each sector.

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File URL: http://www.amse-aixmarseille.fr/sites/default/files/_dt/2012/wp_2013_-_nr_55.pdf
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Bibliographic Info

Paper provided by Aix-Marseille School of Economics, Marseille, France in its series AMSE Working Papers with number 1355.

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Length: 15 pages
Date of creation: Oct 2013
Date of revision: Oct 2013
Handle: RePEc:aim:wpaimx:1355

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Web page: http://www.amse-aixmarseille.fr/en
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Keywords: Public education; Two-sector model; Sectoral taxes; Endogenous growth.;

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  1. Lucas, Robert Jr., 1988. "On the mechanics of economic development," Journal of Monetary Economics, Elsevier, Elsevier, vol. 22(1), pages 3-42, July.
  2. Chang-Tai Hsieh & Peter J. Klenow, 2007. "Relative Prices and Relative Prosperity," American Economic Review, American Economic Association, American Economic Association, vol. 97(3), pages 562-585, June.
  3. Andres Erosa & Tatyana Koreshkova & Diego Restuccia, 2009. "How Important is Human Capital? A Quantitative Theory Assessment of World Income Inequality," Working Papers, Concordia University, Department of Economics 09007, Concordia University, Department of Economics, revised Mar 2009.
  4. Glomm, Gerhard & Ravikumar, B., 1997. "Productive government expenditures and long-run growth," Journal of Economic Dynamics and Control, Elsevier, Elsevier, vol. 21(1), pages 183-204, January.
  5. Blankenau, William F. & Simpson, Nicole B., 2004. "Public education expenditures and growth," Journal of Development Economics, Elsevier, Elsevier, vol. 73(2), pages 583-605, April.
  6. William F. Blankenau & Nicole B. Simpson & Marc Tomljanovich, 2007. "Public Education Expenditures, Taxation, and Growth: Linking Data to Theory," American Economic Review, American Economic Association, American Economic Association, vol. 97(2), pages 393-397, May.
  7. Glomm, Gerhard & Ravikumar, B, 1992. "Public versus Private Investment in Human Capital Endogenous Growth and Income Inequality," Journal of Political Economy, University of Chicago Press, University of Chicago Press, vol. 100(4), pages 818-34, August.
  8. Parantap Basu & JKeshab Bhattarai, 2012. "Government Bias in Education, Schooling Attainment, and Long-Run Growth," Southern Economic Journal, Southern Economic Association, vol. 79(1), pages 127-143, July.
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