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Public expenditure on education: A review of selected issues and evidence

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  • Mukherjee, Anit N.

    (National Institute of Public Finance and Policy)

Abstract

The role of education in economic development has been recognised for quite some time in mainstream economic literature. Divergence between the private and social rate of return from education is the rationale for intervention by the state in ensuring equity in opportunity across the population. The so-called `New Growth Theories' predict that higher levels of schooling and better quality of workforce will lead to an increase in the rate of growth, further strengthening the case for public expenditure on education. The outcome of these lines of research also has implications for the financing of education. However, the effectiveness and efficiency of resource allocation by the government has generated considerable debate, both from ideological and technical points of view. It is widely acknowledged that there is a large scope for improvement in both the level, and the quality of publicly-funded education. New institutional arrangements are being designed to address the deficiencies in incentives and monitoring, thereby improving quality.

Suggested Citation

  • Mukherjee, Anit N., 2007. "Public expenditure on education: A review of selected issues and evidence," Working Papers hd1, National Institute of Public Finance and Policy.
    • Handle: RePEc:npf:wpaper:hd1
    Note: Financing Human Development Working Paper 1, 2007
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    File URL: http://www.nipfp.org.in/working_paper/wp_2007_hd_51.pdf
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    References listed on IDEAS

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    Cited by:

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    2. Dauda, Risikat Oladoyin S., 2011. "Effect of Public Educational Spending and Macroeconomic Uncertainty on Schooling Outcomes: Evidence from Nigeria," Journal of Economics, Finance and Administrative Science, Universidad ESAN, vol. 16(31), pages 7-21.
    3. Angel Angelov, 2019. "Public Expenditure On Education In The Eu Member States: A Cluster Analysis," Economic Archive, D. A. Tsenov Academy of Economics, Svishtov, Bulgaria, issue 1 Year 20, pages 52-64.
    4. Monojit Chatterji & Sushil Mohan & Sayantan Ghosh Dastidar, 2015. "Determinants of public education expenditure: evidence from Indian states," International Journal of Education Economics and Development, Inderscience Enterprises Ltd, vol. 6(1), pages 1-19.
    5. Andrés Felipe SALAZAR CUELLAR, 2014. "The Efficiency of Education Expenditure in Latin America and Lessons for Colombia," Archivos de Economía 11209, Departamento Nacional de Planeación.
    6. Andrzej Kwiatkowski, 2013. "Education investment effects of affirmative action policy. Contest game argument," Dundee Discussion Papers in Economics 279, Economic Studies, University of Dundee.

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    Public expenditure ; Education;

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