Public investment in basic education and economic growth
AbstractThe main objective of this paper was to visualize the relation between governmentspending on basic education and the human capital accumulation process, observingthe impacts of this spending on individual investments in higher education, and oneconomic growth. It is used an overlapping-generations model where the governmenttax the adult generation and spent it in basic education of the next generations. Itwas demonstrated that the magnitude of the marginal effect of government spendingin basic education on growth crucially depends on public budget constrains. The paperexplains why some countries with a lot of public investment in basic education growthat low rates. In that sense if a country has only a lot of public investment in basiceducation without investment in higher education it may growth at low rates becausethe taxation can cause distortions in the agents incentives to invest in higher education.
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Bibliographic InfoPaper provided by Escola de Economia de São Paulo, Getulio Vargas Foundation (Brazil) in its series Textos para discussão with number 230.
Date of creation: 29 Jun 2010
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Other versions of this item:
- 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.
- 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].
- 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
This paper has been announced in the following NEP Reports:
- NEP-ALL-2010-07-10 (All new papers)
- NEP-DGE-2010-07-10 (Dynamic General Equilibrium)
- NEP-EDU-2010-07-10 (Education)
- NEP-FDG-2010-07-10 (Financial Development & Growth)
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