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Determinants of public education expenditure: Evidence from Indian states

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  • Chatterji, Monojit
  • Mohan, Sushil
  • Dastidar, Sayantan Ghosh

Abstract

Public education expenditure varies significantly across Indian states. Using data on sixteen Indian states from 2001-2010, the paper tries to identify the determinants of per capita education expenditure of state governments in India. The econometric findings indicate that richer states spend more on education compared to the poorer states. A lower share of child population (0-14 years) is found to significantly enhance education expenditure at the state level. We do not find any evidence that political factors such as political ideology of the ruling party and level of corruption affect education expenditure of state governments.

Suggested Citation

  • Chatterji, Monojit & Mohan, Sushil & Dastidar, Sayantan Ghosh, 2014. "Determinants of public education expenditure: Evidence from Indian states," SIRE Discussion Papers 2014-018, Scottish Institute for Research in Economics (SIRE).
    • Handle: RePEc:edn:sirdps:562
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    Cited by:

    1. P. Geetha Rani, 2017. "Financing higher education and education loans in India: interstate differentials and determinants," Journal of Social and Economic Development, Springer;Institute for Social and Economic Change, vol. 19(1), pages 42-59, April.
    2. Sayantan Ghosh Dastidar & Nicholas Apergis, 2022. "Holidays and economic growth: Evidence from a panel of Indian states," Economics of Transition and Institutional Change, John Wiley & Sons, vol. 30(1), pages 33-50, January.
    3. Biswajit Mohanty & N.R. Bhanumurthy & Ananya Ghosh Dastidar, 2017. "What explains regional imbalances in public infrastructure expenditure? Evidence from Indian states," Asia-Pacific Development Journal, United Nations Economic and Social Commission for Asia and the Pacific (ESCAP), vol. 24(2), pages 113-139, December.
    4. Mohanty, Biswajit & Bhanumurthy, N. R. & Dastidar, Ananya Ghosh, 2017. "What explains Regional Imbalances in Infrastructure?: Evidence from Indian States," Working Papers 17/197, National Institute of Public Finance and Policy.
    5. Jyotsna Rosario & K. R. Shanmugam, 2023. "Impact of transfers on elementary education expenditure and measuring equalisation transfers to Indian States," Indian Economic Review, Springer, vol. 58(1), pages 141-168, June.

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    More about this item

    Keywords

    public education expenditure; public policy; Indian states; panel data;
    All these keywords.

    JEL classification:

    • H52 - Public Economics - - National Government Expenditures and Related Policies - - - Government Expenditures and Education
    • H72 - Public Economics - - State and Local Government; Intergovernmental Relations - - - State and Local Budget and Expenditures
    • J11 - Labor and Demographic Economics - - Demographic Economics - - - Demographic Trends, Macroeconomic Effects, and Forecasts
    • J18 - Labor and Demographic Economics - - Demographic Economics - - - Public Policy

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