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Government bias in education, schooling attainment and growth

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  • Basu, Parantap
  • Bhattarai, Keshab

Abstract

A surprising cross country stylized fact is that a higher public spending on education tends to lower the long run per capita growth rate and schooling returns. This is contrary to the conventional wisdom that education is a major driver of growth. In this paper, we revisit this issue and try to understand these puzzling facts in terms of an endogenous growth model. Our cross country calibration of the growth model predicts that countries with a greater government involvement in education experience lower schooling efforts and lower growth.

Suggested Citation

  • Basu, Parantap & Bhattarai, Keshab, 2011. "Government bias in education, schooling attainment and growth," MPRA Paper 31791, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:31791
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    References listed on IDEAS

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    More about this item

    Keywords

    endogenous growth; public spending on education;

    JEL classification:

    • E62 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - Fiscal Policy; Modern Monetary Theory
    • N10 - Economic History - - Macroeconomics and Monetary Economics; Industrial Structure; Growth; Fluctuations - - - General, International, or Comparative

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