Macroeconomic effects of public education expenditure

Angelopoulos, K. , Malley, J. and Philippopoulos, A. (2008) Macroeconomic effects of public education expenditure. CESIFO Economic Studies, 54(3), pp. 471-498. (doi: 10.1093/cesifo/ifn021)

Abstract

This article studies the growth and welfare effects of public education spending in the USA for the post-war period. We calibrate a standard dynamic general equilibrium model, where human capital is the engine of long-run endogenous growth. Our results suggest that while increases in public education spending raise growth, these increases are not necessarily welfare promoting. Welfare gains however can be realized if increases in public education spending are accompanied by changes in the government tax-spending mix.

• Item Type: Articles
• Additional Information: Special Issue on Productivity and Growth
• Status: Published
• Refereed: Yes
• Glasgow Author(s) Enlighten ID: Philippopoulos, Prof Apostolis and Malley, Professor Jim and Angelopoulos, Professor Konstantinos
• Authors: Angelopoulos, K., Malley, J., and Philippopoulos, A.
• Subjects: H Social Sciences > HB Economic Theory
• College/School: College of Social Sciences > Adam Smith Business School > Economics
• Journal Name: CESIFO Economic Studies
• ISSN: 1610-241X