Public Education Expenditures Research Articles

Impacts on the efficiency of public expenditure in the fundamental education of São Paulo cities through the expenditure element categories

Purpose: This study aims to measure the impact of public spending on basic education in São Paulo cities on the efficiency of public educational expenditure.
 Method: The calculation of the efficiency is based on the Data Envelopment Analysis (DEA), having as input the public expenditures in education in the years 2014 to 2017 and output the municipal score of Prova Brasil 2017. The measurement of the impact of public expenditures on efficiency is based on the technique of Multiple Linear Regression (MLR) by Ordinary Least Squares (OLS), having as explanatory variables educational expenses classified as wages, purchases, travel, interest and permanent materials, and variable response efficiency index of public expenditure.
 Results: From the statistical models of MLR different regression coefficients were obtained, which estimate the change in the efficiency index of public expenditure when the expenditure is increased or withdrawn. The results expressed that there is a negative correlation between all categories of the expenditure element and the efficiency of public educational spending in the period from 2014 to 2017.
 Contributions of the Study: This study, in a pioneering way, adopts the budget accounting classification of the categories of the element of the expense, thus approaching the study of the efficiency of the closest possible object to which the classification of the expenditure refers.

Intereses de élite y gasto público en educación a finales del siglo XIX y principios del XX en Prusia: un diálogo entre la historia y la economía

Este artículo analiza la manera en que la política de educación pública de Prusia fue orientada intencionalmente hacia principios económicos que los economistas modernos han formalizado y replicado. El ensayo compara los resultados de dos modelos económicos con las intenciones de los funcionarios del gobierno prusiano, las cuales se encuentran recogidas en la agenda de investigación de historiadores y académicos. El documento concluye que la política de educación pública de Prusia fue intuitiva e intencionalmente influenciada por principios económicos y las orientaciones de los modelos teóricos y empíricos seleccionados para tal fin.

An Econometric Approach on Public Expenditure for Education and Economic Growth-Evidence from Bangladesh

An Econometric Approach on Public Expenditure for Education and Economic Growth-Evidence from Bangladesh

Empirical Analysis on Public Expenditure for Education and Economic Growth: Evidence from Indonesia

The purpose of this paper is to find the relationship between public expenditure in the educational sector and the economic growth in Indonesia since the government decided to spend 20% of the state budget on education. We used time series data from 1988 to 2018 and the Cobb–Douglas production function as an economic theory for measurement. In the methodology, we employed Autoregressive Distributed Lag bound tests to find the relationship between variables. The results show that public expenditure on education has an insignificant relationship in the long- and short-term estimation. However, they both have different directions, which is a positive relationship in long-term and a negative relationship in short-term estimation. Meanwhile, gross fixed capital formation shows a positive relationship, and the labour variable has a negative relationship in the short and long terms. In conclusion, the Indonesian government should manage the education system regarding the relationship between education expenditure and economic growth.

The role of public expenditure on secondary and higher education for achieving inclusive growth in India

AbstractWe analyze the role of public expenditures on secondary and higher education for achieving inclusive growth, using a computable general equilibrium model of India. Our policy simulations show that increasing public education expenditure leads to higher growth and lower inequality. Expenditure on secondary education leads to better outcomes compared to equivalent expenditure on higher education. Exogenous technological progress enhances the positive effects of public education spending. The findings of the paper call for policy initiatives to boost spending on secondary education, as well as technological progress, for achieving inclusive growth in India.

GDP and Public Expenditure in Education, Health, and Defense. Empirical Research for Greece

Wagner Law and Keynesian approaches are the two fundamental theories of public finance. The aim of this study is to assess empirical evidence for the public spending–national income relationship at a disaggregated level for the time period 1995–2019. The sectoral public expenditures include education, health, and defense. The data employed were derived by EUROSTAT and OECD. Based on our findings, a sole relationship of the variables was validated, while the causality of the relationship provides conflict results depending on whether two-variate or multivariate methodology is employed. In the case of the multivariate framework that outperforms the two-variate approach in terms of information, the causality is directed from government expenses to the GDP level, validating the Keynesian approach in the long run as well as in the short run. On the other hand, the results validate Wagner Law based on the results of Granger causality pairwise test. A potential interpreatation for the results found is related to the measures imposed by the Memorandum, since the disproportionate cuts of the public expenses in the period of crisis have determined the evolution of national income. The scientific value of the presents study stands on the suggestion of potential effective measures aiming at the limitation of national income shrinkage in periods of severe economic crises worldwide.

The impact of income on public health and education expenditure: Evidence from the Indian states

In this study, we examine the long‐run impact of state‐level per capita income on public education expenditure and public health expenditure in 17 major Indian states over the period 1993–2017. To test for the existence of a unit root, we have employed the Zivot–Andrews test and the Clemente–Montañes–Reyes test, which allows for an endogenous structural break in the data series. These tests indicate that all variables are nonstationary. Autoregressive distributed lag model with one structural break is applied to find the cointegration of variables and estimate the cointegrating equation. The bounds test reveals the presence of a long‐run relationship between public health expenditure and per capita income in 12 out of 17 states, between public education expenditure and per capita income in 15 out of 17 states. The result shows that per capita income affects the public health and education expenditure of states. We find elasticities of public health expenditure and public education expenditure vary across states and are small in magnitude (less than one for most of the states). Our results suggest that public health and education expenditures are necessary goods. Based on the results, we also draw policy implications from our findings.

Public education expenditure and economic growth: based on panel data from 2009 to 2019 in China

Public education expenditure is the largest public expenditure and the foundation of education development in China. This paper uses Cobb-Douglas production function model to analyze the relationship between public education expenditure and China's economic growth, and explores the impact of the proportion of public education expenditure in primary, secondary and tertiary education expenditure on economic growth. The results show that public education expenditure has a positive effect on economic growth, and that secondary education accounts for the largest contribution to economic growth, followed by higher education and primary education. The research results suggest that China should increase financial investment in education and optimize the expenditure structure of three-level education.

Public education expenditure and economic growth: based on panel data from 2009 to 2019 in China

Public education expenditure and economic growth: based on panel data from 2009 to 2019 in China

Wealth distribution and skills generation under public and private education systems

Purpose This paper aims to understand the differing impacts of wealth distribution on human capital accumulation and skilled-unskilled labour generation under three educational paradigms as follows: private, public and a system of mixed education. Design/methodology/approach The authors use an overlapping generations model. Findings The wealth dynamics show that both in the private education system and public education system, there are two possible outcomes- stagnation and steady growth depending on the efficiency of the education system, skill premium and other parameters. The choice of the education system through voting is discussed. It is found that skilled workers would always vote for private education whilst unskilled workers vote for private education if public education expenditure of the economy is low. Research limitations/implications The study is subject to several limitations. This paper considers the rate of interest and wage rate to be exogenously given, and thus ignores the general equilibrium effects. The authors do not consider the labour-leisure choice. The introduction of labour leisure choice in the model would alter many of the results. The authors do not consider heterogeneous ability across individuals. The analysis of the differential efficiency of the different education systems needs further, rigorous research. Also, this paper does not consider other occupations such as entrepreneurship and self-employment. This paper considers the labour demand function to be perfectly elastic, and hence, does not consider any demand constraint. What happens if bequests are taxed? What happens if parents are not altruistic? These questions may be addressed in future research. Social implications If the proportion of tax paying skilled labour is low in any country, pure public education may not be able to generate sustained human capital growth. For countries with a sufficiently large proportion of skilled labour, the public education system would be successful. On the other hand, if skill premium is low or the education system is poorly managed private education system may fail too. Originality/value Whilst investigating the effects of public vs private education on growth and development in the presence of unequal wealth distribution, The authors have tried to address a few questions. First, why the public education system has been successful in skill accumulation in developed countries whilst it has failed to do so in less developed countries? Second, why do some countries with mostly privately run educational institutions perform much better in human capital production whilst others do not? Third, in an economy with unequal wealth distribution, what are the factors that result in public or private education as a voting equilibrium outcome?

Fiscal policy and environment: a long-run multivariate empirical analysis of ecological footprint in Pakistan.

The ecological footprint attempts to quantify human impact on nature and its resources necessary to satisfy human needs. This research study explores the long-run implications of fiscal policy on the ecological footprint in Pakistan empirically, keeping different socio-economic factors into consideration. Per annum, time series data have been collected between 1976 and 2018, and the ARDL model is applied to investigate this long-run and short-run association. The conclusion of ARDL model shows that a 1% increase in public development expenditures, total population, GDP, and energy consumption increase 0.19, 2.17, 1.16, and 2.17% ecological footprint, respectively, in Pakistan between 1976 and 2018 vice versa. However, it is also derived that a 1% increase in public tax and non-tax revenue and current public expenditures (in health, education, and other social sectors) shrink 0.36 and 0.013% ecological footprint in the long run in Pakistan. For policy implications, these results focus on practical fiscal policy significance to achieve environmental targets in Pakistan, suggesting an increase in public current expenditures in public and social sectors and increasing public revenue by expanding the tax base, which will ultimately reduce ecological footprint in the long run in Pakistan.

Comparison of Turkey and Countries with High PISA Achievement in terms of Education Expenditures and Academic Achievements

The aim of this research is to compare the education expenditures of the Economic Cooperation and Development Organization (OECD) countries such as Canada, Finland and South Korea, which are successful in the 2018 cycle of the Program for International Student Assessment (PISA) with Turkey, and to make suggestions for Turkey. The research was designed in the scanning model. The research population is 36 OECD countries. Canada, Finland and South Korea which were succeed in the 2018 PISA and Turkey were selected as samples. Data were obtained from OECD reports on the 2018 PISA cycle and other international and national documents. In the research, document analysis method was used. According to the results of the research, it has been seen that the education expenditures of Canada, Finland and South Korea are high and the countries are successful in PISA. Therefore, it can be said that there is a positive relationship between PISA achievement and education expenditures. Public education expenditures only in higher education in Turkey are higher than Canada, Finland and South Korea and the OECD average. Education expenditures per student in Turkey are below the OECD average and almost a third of that of Canada, Finland and South Korea. There are significant differences when comparing Turkey with other countries (Canada, Finland and South Korea) in terms of Gross Domestic Product (GDP), expenditure per student and teachers' salaries.

Comparing COSTATIS and Generalized Procrustes Analysis with Multi-Way Public Education Expenditure Data

Governments serve a variety of purposes, and where governments spend their money has always been of concern to society. In particular, spending on public education is of great interest. However, the volume of this information can be difficult to manage. Therefore, the purpose of this work is to compare the COSTATIS method and generalized Procrustes analysis (GPA) when working with multi-way data. Despite the particular characteristics of each of them, they present similarities and differences that, when analyzed together, can provide complementary results to researchers. The COSTATIS consists of a co-inertia analysis of the compromise of two k-table analyses. The GPA method provides an optimal superimposed representation of individual configurations, and a common consensus configuration is constructed as the mean of all transformed configurations. In addition, the GPA method includes the translation, rotation and scaling of coordinates. In this study, both methods were applied, and the advantages and disadvantages of each are presented. The treated data are a sequence of tables from various countries where different public expenditures on education have been measured over time.

Household education expenditures in Turkey for higher education exam preparation

The study explored the household education expenditures for higher education exam preparation in Turkey. The study employed the case study design, one of the qualitative research designs. The study group consisted of families whose children were preparing for the higher education exam. The families were living in the city of Zonguldak. While determining the study group, criterion sampling technique and snowball sampling technique were used. The study data were collected using a semi-structured interview form. The study showed that households had education expenditures for higher education exam preparation. These expenditures were in the form of exam books and private teaching institutions/private lesson expenditures. Educational expenditures of households affected the economic, social, and individual life of the household. This effect was in the form of postponing or abandoning the basic needs of the household. Families recommended a change in the education system in order to reduce/eliminate household education expenditures. In a period when neoliberal education policies are on the agenda, it can be stated that the contribution of households to education expenditures will continue. Pulling away from the marketized examination approach and strengthening public education expenditures instead of household education expenditures are not limited to education policies, but also depends on the change in political and economic policies. Key words: Higher education, education expenditures, household education expenditures, neoliberalism.

Distributional Effects of Public Educational Expenditures: Empirical Results from Cohort Analysis

This article scanned the empirical analysis of the distributional effects of public education expenditure using Gini coefficient of education based on cross-sectional data across cohorts in Bangladesh. The main purpose of this study was to investigate whether education expenditure plays a role as a catalyst to diminish education inequality across the country by increasing years of schooling across levels of education. The Data set proved that overall years of schooling increased while education expenditure increases for a long time having slight fluctuations. Consequently, the Gini coefficient of education gradually increased and the inequality of education getting narrowed down across levels of education. Distributional effects of public expenditure on education across cohorts produced an exceptionally good result indicating positive relationships between years of schooling and the Gini coefficient of education. Despite the achievements of the education sector, the government of Bangladesh has comprehended that in the public sector education, there are substantial numbers of challenges make it tough to get the best outcomes along with quality education and insufficient budget flow across levels of education. This paper tended to uncover education redistributive policy and the existence of inequality in the cohorts across levels of education by estimating the Gini coefficient of education in Bangladesh.

The impact of budget deficit, public debt and education expenditures on economic growth in Poland

AbstractThis paper investigates the relationship between economic growth in Poland and a few metrics of fiscal policy: budget deficit relative to GDP, the structure of public debt, education expenditures, and public consumption. We prove that with constant values of parameters of fiscal policy, over time the economy converges to the balanced growth path which is unique and globally asymptotically stable.Having calibrated the model with statistical data, we demonstrate that in the period of 2000–2016 economic growth in Poland was driven primarily by rapid improvement in the level of human capital (at a rate of 5.4% per annum), and secondarily due to the accumulation of capital (2.7% annually). If recent trends in fiscal policy are continued, the Polish economy will converge to the balanced growth path with GDP growing at 3.7%. This rate may be boosted, if fiscal policy is appropriately adjusted, for example by permanent reduction in budget deficit. We also analyse the effects of changes in the financing structure of public debt. Finally, we present several scenarios of increasing public and private spending on education.

The Relationship Between Education Outputs, Education Expenditure, and Economic Growth in Saudi Arabia

The present study investigated the relationship between education outputs, Education expenditure, and economic growth in Saudi Arabia for the time period of 1986–2016. The results obtained after employing the Autoregressive Distributed Lag (ARDL) model revealed a long-term relationship between the studied variables, an inverse relationship between the number of graduates and growth in the long term, whereas a non-significant positive relationship appeared in the short -term. Findings indicate also that public spending in education has a positive and significant impact on economic growth in the long run. Furthermore, he observed that a 1% increase in public expenditure in education contributes 18% increase in GDP per capita in the long run. This is in line with economic theory and previous research showing that expenditure on education leads to a rise in GDP per capita and economic growth rates. The recommendations of this study are fundamental to the Kingdom of Saudi Arabia.

Improving Education Efficiency by Consolidating Public Schools with Few Students

The study aimed to review the best international practices for the consolidation of public schools in areas with low population density in order to improve the efficiency of public education expenditure. The study used the descriptive analysis method by analyzing documents from the best international practices on the consolidation of public schools. The study used two tools, namely, analyzing documents and interviews with 20 experts. The study found that the best international practices for consolidating schools with a small number of students are based on a national consolidation manual, diversity in standards of consolidation and its alternatives, raising the awareness of the local community, and provision of safe and comfortable school transportation. Finally, the study provided suggestions for consolidating schools to improve the efficiency of public education expenditure in Saudi Arabia.

EXAMINING THE RELATIONSHIP BETWEEN PUBLIC SPENDING ON EDUCATION AND UNEMPLOYMENT PROBLEM IN NIGERIA

Much of the problems of unemployment in the past has been placed on the inadequacy of the country’s schooling system to be able to impact needed skills. Empirical and theoretical evidences are overwhelmingly in support of the significant role of public expenditure in education having multiplier effect on employment. Empirical evidence shows that this is not consistent in a macroeconomic framework. Government has been indicted of not doing enough to support education with its budgetary shortcomings to the sector. This study investigates the impact of government spending on unemployment in Nigeria. OLS estimates adopted for secondary data regressed over 27-year period for unemployment, federal government recurrent expenditure on education and economic growth indicated that while growth is significant and indeed influence unemployment negatively in line with our a-priori expectation, it is not the same for the impact of public expenditure on education. Our findings from this was that while Nigeria’s educational capacity has increased, its impact is shallow as the economy is unable to absorb the graduates. In order to address this anomaly, government will need to enhance its effectiveness through creating adequate channels for enterprise growth and sustainability which will increase the latter’s capacity to employ more labour.
 Nigeria, unemployment, public expenditure, education, human capitalJEL Classification: E62, H52, I22, I28

EXAMINING THE RELATIONSHIP BETWEEN PUBLIC SPENDING ON EDUCATION AND UNEMPLOYMENT PROBLEM IN NIGERIA

Much of the problems of unemployment in the past have been placed on the inadequacy of the country’s schooling system to be able to impact needed skills. Empirical and theoretical evidence is overwhelmingly in support of the significant role of public expenditure in education having a multiplier effect on employment. Empirical evidence shows that this is not consistent in a macroeconomic framework. Government has been indicted for not doing enough to support education with its budgetary shortcomings to the sector. This study investigates the impact of government spending on unemployment in Nigeria. OLS estimates adopted for secondary data regressed over the 27 years for unemployment, federal government recurrent expenditure on education and economic growth indicated that while growth is significant and indeed influence unemployment negatively in line with our a-priori expectation, it is not the same for the impact of public expenditure on education. Our findings from this were that while Nigeria’s educational capacity has increased, its impact is shallow as the economy is unable to absorb the graduates. To address this anomaly, the government will need to enhance its effectiveness through creating adequate channels for enterprise growth and sustainability which will increase the latter’s capacity to employ more labour.