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More countries, similar results. A nonlinear programming approach to normalising test scores needed for growth regressions

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  • Martin Gustafsson

    ()
    (Department of Economics, University of Stellenbosch)

Abstract

Analysts such as Hanushek and Woessman have brought to the fore the deceptiveness of education enrolments, or years of schooling, in growth regressions and the need to consider educational quality. In this paper, a nonlinear programming solution is proposed as a way of normalising to a single scale country average test scores from various international testing programmes. This method, though less transparent and more dependent on certain subjective choices than the existing approach put forward by Hanushek and Woessman, allows for the inclusion of more countries, in particular more African and developing countries, into a growth regression. The regression produces the results one would expect, namely a strong conditional correlation between growth and educational quality. The utility of growth regressions with an educational quality variable for the education policymaker is discussed. A method for arriving at feasible annual improvements in educational quality and hence feasible country targets is presented

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File URL: http://www.ekon.sun.ac.za/wpapers/2012/wp122012/wp-12-2012.pdf
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Bibliographic Info

Paper provided by Stellenbosch University, Department of Economics in its series Working Papers with number 12/2012.

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Date of creation: 2012
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Handle: RePEc:sza:wpaper:wpapers164

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Keywords: human capital; cross-country growth model; test score data; nonlinear programming; education policy; PISA; SACMEQ; SERCE;

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  1. Eric A. Hanushek & Ludger Woessmann, 2007. "The Role of School Improvement in Economic Development," NBER Working Papers 12832, National Bureau of Economic Research, Inc.
  2. Eric A. Hanushek & Ludger Woessmann, 2009. "Do Better Schools Lead to More Growth? Cognitive Skills, Economic Outcomes, and Causation," CESifo Working Paper Series 2524, CESifo Group Munich.
  3. Christopher F Baum, 2006. "An Introduction to Modern Econometrics using Stata," Stata Press books, StataCorp LP, number imeus, July.
  4. Stan du Plessis & Ronelle Burger, 2006. "Examining the Robustness of Competing Explanations of Slow Growth in African Countries," Working Papers 03/2006, Stellenbosch University, Department of Economics.
  5. N. Gregory Mankiw & David Romer & David N. Weil, 1992. "A Contribution to the Empirics of Economic Growth," NBER Working Papers 3541, National Bureau of Economic Research, Inc.
  6. Robert J. Barro & Xavier Sala-i-Martin, 2003. "Economic Growth, 2nd Edition," MIT Press Books, The MIT Press, edition 2, volume 1, number 0262025531, January.
  7. Robert J. Barro & Rachel McCleary, 2003. "Religion and Economic Growth," NBER Working Papers 9682, National Bureau of Economic Research, Inc.
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