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Infrastructure, Public Education And Growth With Congestion Costs

Listed author(s):
  • Pierre-Richard Agénor

type="main" xml:lang="en"> This paper studies the implications of education quality for the optimal allocation of public expenditure in a simple endogenous growth model with mandatory schooling and infrastructure spillovers. Education quality is inversely related to the degree of congestion in schools, which is itself measured in two ways: the proportions of teachers and students in the population, and the ratio of government spending on education to teaching capacity. The balanced-growth path is derived and the transitional dynamics associated with an increase in the degree of congestion are analysed. The growth-maximizing share of government spending on education is shown to depend negatively on the congestion parameter. Policy implications for the ‘quantity versus quality’ debate in schooling are also discussed.

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File URL: http://hdl.handle.net/10.1111/j.1467-8586.2011.00395.x
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Article provided by Wiley Blackwell in its journal Bulletin of Economic Research.

Volume (Year): 64 (2012)
Issue (Month): 4 (October)
Pages: 449-469

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Handle: RePEc:bla:buecrs:v:64:y:2012:i:4:p:449-469
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