Gregory C. Chow (Princeton University) Yan Shen (Peking University)
Abstract
After discussing the sources of funding of education in China this paper offers an explanation of the quantitative changes in education spending by the framework of demand analysis, including the changes in the ratio of educational funding to GDP in the period 1991-2002. Income effect is estimated mainly by using cross-provincial data, while time series data are used to estimate the price effect. Changes in government and non-government spending through time can be satisfactorily explained by the factors of demand. Demand for education services in the three levels of primary school, secondary school and higher education and aggregate demand for education services are investigated. Implications of our finding on inequality of education opportunities are briefly stated.
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Publisher Info
Paper provided by Princeton University, Department of Economics, Center for Economic Policy Studies. in its series Working Papers with number
96.