Naito, Katsuyuki and Nishida, Keigo (2012): Composition of Public Education Expenditures and Human Capital Accumulation.
Download (105kB) | Preview
This paper provides a simple theory to study how the allocation of public funds between primary and higher education affects human capital accumulation. The allocation is endogenously determined through majority voting. Public funding for higher education is not supported when a majority is poor. In some cases, higher education starts to be realized as a majority of individuals accumulate enough human capital through primary education. Although the emergence of higher education can accelerate aggregate human capital accumulation, it widens income inequality because the very poor are excluded from higher education and the declined budget share for primary education decreases its quality.
|Item Type:||MPRA Paper|
|Original Title:||Composition of Public Education Expenditures and Human Capital Accumulation|
|Keywords:||Public Education; Economic Development; Income Inequality; Majority Voting|
|Subjects:||O - Economic Development, Technological Change, and Growth > O1 - Economic Development > O11 - Macroeconomic Analyses of Economic Development
O - Economic Development, Technological Change, and Growth > O1 - Economic Development > O15 - Human Resources; Human Development; Income Distribution; Migration
D - Microeconomics > D7 - Analysis of Collective Decision-Making > D72 - Political Processes: Rent-Seeking, Lobbying, Elections, Legislatures, and Voting Behavior
O - Economic Development, Technological Change, and Growth > O4 - Economic Growth and Aggregate Productivity > O40 - General
|Depositing User:||Keigo Nishida|
|Date Deposited:||22. Jun 2012 10:23|
|Last Modified:||14. Feb 2013 19:38|
Arcalean, C., Schiopu, I., 2010. Public versus private investment and growth in hierarchical education system. Journal of Economic Dynamics and Control 34, 604-622.
Blankenau, W., 2005. Public schooling, college subsidies and growth. Journal of Economic Dynamics and Control 29, 487-507.
Blankenau, W., Cassou, S.P., Ingram, B., 2007. Allocating government education expenditures across K-12 and college education. Economic Theory 31, 85-112.
Galor, O., Moav, O., Vollrath, D., 2009. Inequality in landownership, the emergence of human-capital promoting institutions, and the great divergence. Review of Economic Studies 76, 143-179.
Glomm, G., Ravikumar, B., 1992. Public versus private investment in human capital: endogenous growth and income inequality. Journal of Political Economy 100, 818-834.
Restuccia, D., Urrutia, C., 2004. Intergenerational persistence of earnings: the role of early and college education. American Economic Review 94, 1354-1378.
Saint-Paul, G., Verdier, T., 1993. Education, democracy and growth. Journal of Development Economics 42, 399-407.
Su, X., 2004. The allocation of public funds in a hierarchical educational system. Journal of Economic Dynamics and Control 28, 2485-2510.