Public Education Spending Research Articles

The response of public education spending to changes in student cohort sizes

ABSTRACT In this paper, we study the elasticity of educational spending with respect to changing student numbers, in a system where educational spending is autonomously determined at a regional level. While many studies focus on the potential effect of an ageing society on educational spending, only a few explicitly analyse the direct effect of changing cohort sizes. We find that education expenditures respond rather loosely to changing student numbers and that the elasticity strongly depends on regional and institutional settings. In rural areas, for instance, educational spending tends to be completely inelastic, which raises questions regarding both, efficiency and equity concerns.

What Determines Public Funding for Elementary Education in India? Evidence From Before and After a Policy Change

ABSTRACTKeeping to the increased emphasis on better educational quality across India as a tool of nation‐ building strategy, this study attempts to integrate demand components in analyzing the determinants of public spending for elementary education across states in India from 2005 to 2016. The study finds that the income (per capita) elasticity of per student government expenditure is higher in post‐reform period. The state government's share of income devoted to elementary education remains roughly constant. Applying a correlated random effect approach to linear balanced panel data, this paper concludes that over time, a major determinant of growth of per student government expenditure is the growth of income per capita. Household demand for education, which is positively correlated with states' levels of development, influences public funding for education across states. The results will be important for analyzing general equilibrium models where the government aims to fulfill household demand.

Income inequality: The effects of public education expenditure and information and communications technology in sub-Saharan Africa

Background: As nations globally strive to meet the United Nations Sustainable Development Goal (SDG) 10, which underscores the reduction of inequality, there is an increasing need to harness the power of education and information and communications technology (ICT) to achieve this aim. Therefore, this study is motivated by this rationale.Aim: The synergistic effect of government spending on education and ICT on income inequality in sub-Saharan Africa (SSA) in the long run.Setting: Panel data for 30 SSA countries from 1990 to 2022 are used.Method: This research used the Fully Modified Ordinary Least Square (FMOLS) technique, which provides long-run estimates, to achieve the aim of the article.Results: The FMOLS results reveal that public education expenditure increases income inequality while its squared expenditure reduces it in the long run. However, over time, ICT diminishes inequality. Notably, the combined effect of public education spending and ICT strengthens the effect of public education expenditure on income inequality in SSA in the long term.Conclusion: In summary, with the incorporation of additional control variables in the analyses, it suggests that SSA’s governments, along with policymakers, have the opportunity to achieve income inequality reduction by strategically making use of public education spending and ICT.Contribution: This article adds significant value to the literature by demonstrating the effect of public education spending and ICT on income inequality in SSA (characterised by higher level of income inequality). To mitigate concerns regarding endogeneity, this article uses FMOLS.

Impacto del gasto público en educación sobre el crecimiento económico en la región macro sur del Perú durante el periodo 2003-2021

The present research work aims to determine the impact of public spending on education on economic growth in the southern macro region of Peru during the period 2003 to 2021, covering the regions of Puno, Tacna, Arequipa, Moquegua, Apurímac, Cusco and Madre de Dios. The data used come from the statistical area of the Ministry of Economy and Finance, the National Institute of Statistics and Informatics and the Educational Quality Statistics of the Ministry of Education. The methodological approach adopted is hypothetical-deductive, non-experimental with a panel-type design; the estimation of the model was carried out using the Generalized Least Squares Feasible panel data technique which reveals significant quantitative relationships between the analysis variables. In general terms, the main findings indicate that a 1 % increase in public educational spending correlates with a 0.12 % increase in economic growth. Furthermore, when breaking down the impact of public spending by different levels of initial education - primary, secondary and higher - a 1 % increase generates an increase of 0.13 %, 0.14 % and 0.069 % respectively on economic growth. Furthermore, it is highlighted that investment in physical capital has a positive effect on economic growth. In conclusion, total public spending on education and spending by educational levels exhibit a positive and significant impact on economic growth, highlighting the strategic importance of government investment in education as a fundamental catalyst for economic growth.

Crowding in Private Quality: The Equilibrium Effects of Public Spending in Education

Abstract We estimate the equilibrium effects of a public school grant program administered through school councils in Pakistani villages with multiple public and private schools and clearly defined catchment boundaries. The program was randomized at the village level, allowing us to estimate its causal impact on the market. Four years after the start of the program, test scores were 0.2 standard deviations higher in public schools. We find evidence of an education multiplier: test scores in private schools were also 0.2 standard deviations higher in treated markets. Consistent with standard models of product differentiation, the education multiplier is greater for those private schools that faced a greater threat to their market power. Accounting for private sector responses increases the program’s cost-effectiveness by 85% and affects how a policy maker would target spending. Given that markets with several public and private schools are now pervasive in low- and middle-income countries, prudent policy requires us to account for private sector responses to public policy, both in policies’ design and evaluation.

Uniform agricultural tax abolition and differential household labor supply: Evidence from China's urban household survey

Uniform government public policy has steadily shaped the labor supply from households in the past few decades in China with possible differential impact on each parent. This paper investigates how uniform tax policy change plays differential roles in household's labor supply through government public education spending. Utilizing the exogenous shock from China's agricultural tax abolition in 2005, we find that the abolition results in a reduction in female employment but an increase in male employment. Specifically, a 1% increase of agricultural tax to public revenue ratio in the reference year leads to a 0.485% labor supply reduction and 1.50 fewer hours of work per month for married women, whereas the married men's labor supply increases by 0.191% and their working hours by 1.06 h in a typical urban family with school-going children. The effects are greater on married women with primary school-age children and married men from high-asset households. Our mechanism analysis indicates that public education spending works as a substitute for private education spending and affects the household labor supply through investment in children's human capital. Our findings offer a new perspective on the decreasing female labor supply and the widening employment gap between (married) women and (married) men in the Chinese labor market. The findings suggest that public tax policy could lead to unintended consequences on household's labor supply decisions, and thus exacerbate the gender employment gap in the labor market.

Government consumption in the DINA framework: allocation methods and consequences for post-tax income inequality

About half of government expenditure in the United States takes the form of government consumption (e.g., education, defense, infrastructure). In many studies of post-tax inequality based on the Dina framework (including the influential study by Piketty et al. (Q J Econ 133(2):553–609, 2018), government consumption is allocated either proportionally to post-tax disposable income or on a per-capita basis, and the level of inequality is fairly sensitive to this choice. This paper provides direct evidence on how public education spending (a substantial part of government consumption) is actually distributed. An allocation proportional to post-tax disposable income is clearly rejected, while a lump-sum allocation is found to provide a good approximation.

Impact of Public Expenditure on Education in Chhattisgarh

This paper objective to investigate the correlation between public spending on education and the growth of the state of Chhattisgarh. Time-series data spanning from 2000 to 2021 was utilised. Public expenditure has several effects in economy. It can increase economic growth. It can increase social welfare. It is directly expected education is helps Positive Social change of citizen. The result shows that total public expenditure and Education expenditure is highly and statistically significant on economic growth indicator such as GER and DOR in primary level in Chhattisgarh.Public expenditure helps in achieving equitable distribution income and promote growth and welfare. The findings indicate that total public spending and education spending have a statistically significant and positive impact on economic growth indicators like the state's Gross Enrollment Ratio (GER) and the percentage of primary school dropout children (DOR) at the primary level. Education is directly expected to contribute to citizens' positive social transformation. The study's findings show that public spending on education and economic growth are correlated over the long term. Over time, there is a found unidirectional causal relationship between public education spending and Gross State Domestic Product (GSDP).

Public Education Spending Efficiency: the Effect of Economic, Institutional, and Political Factors in the MENA Region

This paper aims to determine the public spending efficiency in primary, secondary, and tertiary education and to study the effect of institutional, political, and economic factors in the MENA region for the period 1998-2018. A non-parametric Data Envelopment Analysis (DEA) approach is used to assess efficiency. The results show that MENA countries are more performers in primary education despite that they spend considerably on secondary and tertiary education. A Censored Tobit regression model is adopted to analyze the determinants of public education efficiency. Many indicators affect efficiency, but primary education efficiency is more sensitive.

Impact of Government Educational Spending on Total Productivity and Economic Growth in Nigeria

Education is an essential tool for human development since it increases a country’s potential for economic growth and productivity. For this reason, policy officials in both advanced and growing nations, as well as education experts, have made education a top priority. Despite the existence of a theoretical relationship between growth and education investment, there is no empirical agreement regarding their relationship. Therefore, the purpose of this study was to ascertain how education spending affected Nigeria’s overall productivity and economic growth between 1981 and 2021. Penn World Table (9.5) and the Central Bank of Nigeria Statistical Bulletin (2021) were the secondary sources of data used in this study. Multiple regression analysis was used in the study to examine how government education investment affects overall productivity and economic growth. The study’s conclusions demonstrate, among other things, the favorable and substantial effects of public education spending on productivity and economic growth. It also demonstrates that health spending has a positive and considerable impact on productivity; yet, when it comes to its effect on economic growth, the impact is positive but negligible. The report suggests that in order to boost overall productivity and economic growth, the government should invest more money on education

THE EFFECTS OF FOREIGN DIRECT INVESTMENTS ON HUMAN CAPITAL IN THE WEST AFRICAN ECONOMIC AND MONETARY UNION (WAEMU)

Since the end of the 1980s, most developing countries, particularly those in the WAEMU, have resorted to foreign capital, notably Foreign Direct Investment (FDI) as a new source of financing. The general observation is that WAEMU countries have difficulty mobilizing and taking advantage of the opportunities offered by foreign capital to initiate their development. The aim of this research is to show the contribution of FDI to the human capital accumulation in WAEMU countries. So, the effects of foreign direct investment and public education spending on human capital are analyses. The data used cover the period 2000-2020 where countries have implemented structural adjustment programs. In order to highlight the effects of foreign direct investments on human capital in the WAEMU, after a theoretical and empirical discussion on foreign direct investments on human capital, an Auto Regressive Distributive Lag (ARDL) model was constructed. The results show that foreign direct investment have a positive significant impact on human capital, which, in terms of economic policy implications means that FDI are means of improving the accumulation of human capital in WAEMU.

Javno obrazovanje, stalni rashodi i produktivnost u industrijskom sektoru u Nigeriji

The debate on whether governments should increase their human capital investment is a popular topic within the realm of economics. This research seeks to solve this issue by looking into the importance of productivity in the manufacturing output as well as the function of productive expenditure. The study examines how the recurrent expenditure of public education in Nigeria between 1981 and 2019 affected manufacturing productivity. The study employed the Augmented Dickey-Fuller (ADF) unit root test and Auto Regressive Distributive Lags (ARDL) approach to analyse the relationship between public education recurrent expenditure, public health spending, trade openness, inflation rate, and the output of the manufacturing sector. The study reveals that public education recurrent expenditure is not significantly associated with manufacturing productivity. According to the study, the government should also concentrate on implementing policy frameworks aimed at improving manufacturing sector productivity by targeting public recurrent education spending.

Public education expenditure and corporate human capital: Evidence from China

The coordinated development of public education spending, human capital accumulation, and economic growth is a prerequisite for the virtuous cycle of regional economic development. The research results indicate that provincial-level public education expenditure has a positive impact on corporate human capital expenditure, and this impact is more pronounced in the western regions and non-state-owned enterprises. Based on this, the Chinese government should establish a long-term mechanism to ensure a certain level of public education investment in the future.

Resourceful futures: Integrating responsible mining and green education for sustainable development in developing and emerging economies

This paper examines the impact of coal mining efficiency, metal ore mining efficiency, and education spending on the sustainable development of ten Asian emerging and developing economies from 1995 to 2020. Results from CS-ARDL (Cross-sectional Augmented Autoregressive Distributed Lag) and ARDL models reveal that public education spending has no significant impact, while both coal mining efficiency and metal ore mining efficiency promote sustainability, with coal mining efficiency being the more influential factor due to its crucial role in manufacturing and power generation. Additionally, the challenges of larger populations and the variable alignment of Foreign Direct Investment (FDI) with sustainability practices are noted. Key policy implications include the need to foster a digital green finance market, liberalize trade flows, develop a circular economy in the mining industry, and encourage green FDI in sustainable mining projects.

Empirical analysis of solutions for metal ore mining sustainability

This study investigates the long-term sustainability of the metal ore mining industry in 16 ASEAN+6 countries participating in the Comprehensive Economic Partnership in East Asia (CEPEA) during the period from 2005 to 2020. It focuses on the impact of various factors, including government spending on public education, Foreign Direct Investment (FDI), inflation rates, green energy resilience, and carbon dioxide (CO2) emissions. The empirical model employed logarithmic transformations and the ARDL approach to analyze the data. The results reveal that increased public education spending leads to a reduction in energy intensity within the metal ore mining sector, with more pronounced effects observed in the long term. FDI has a positive influence on energy intensity in both the short and long term, reflecting a complex relationship. Inflation rates impact energy intensity due to short-term cost pressures and long-term sustainability considerations. Green energy resilience is associated with reduced energy intensity, driven by immediate efficiency gains and long-term sustainability. However, there is a concerning link between CO2 emissions and higher energy intensity in the industry, attributed to energy-intensive processes, resource extraction, regulatory limitations, economic growth, and sustainability requirements. To enhance industry sustainability in CEPEA economies, a comprehensive policy framework is recommended, emphasizing principles of the circular economy, stringent green corporate management systems, promotion of green FDI, education for sustainable development, and the utilization of big data and artificial intelligence to reduce energy intensity.

Determinants of Household Education Expenditure in Uganda: Do the Poor Spend More on Education than the Rich?

This study estimates the Tobit and IV Tobit models using data from the UgandaNational Household Survey (UNHS) 2019/20 to analyse factors that influencehousehold education spending, and examine the impact of different income groups oneducation spending in Uganda. The findings show a positive relationship betweenhousehold income on the one hand; and the level of education of the head of household,household size, urban residence, female-headed household and education spending onthe other. Furthermore, higher-income households are found to have a high-incomeelasticity of demand than low-income households. An increase in total household incomefor high-income quintile households is found to increase educational expenditures by apercentage point than for low-income quintile households. Due to this disparity, thegovernment is advised to revise its cost-sharing approach to public education spending,which needs to be supplemented by household education spending.JEL Classification: D1, I21, I22, I24, C24, R20

Public spending and the resource curse in WAEMU countries: An asymmetry analysis using the hidden cointegration and non-linear panel ARDL framework

In this paper, we analyze the long-run effect of natural resource endowment on total public spending, public education spending, and public health spending in WAEMU member countries. After checking the cross-section dependence and unit root of the variables, this study uses the pooled mean group estimation technique within linear and non-linear panel ARDL models to investigate (a)symmetry effects in the relationship between variables. empirical results suggest that the resource curse hypothesis holds, meaning that natural resources adversely affect public spending. Across multiple specifications, our results support also the crowding-out effect and the institutional channel through which natural resources impact public spending. It seems therefore that the WAEMU countries still fail to transform the resource wealth advantage into favorable development outcomes. In light of the results, a few policy options are discussed in this paper.

Public education expenditures, growth and income inequality

This paper analyzes the relationship between public education spending, long-run growth and income inequality. We propose an endogenous growth model with occupational choice and an endogenous supply of teachers and education quality. We show that endogenous school quality alters the shape of those relationships in a way that has new policy implications. First, growth depends on the level of public education expenditures and on the shape of the human capital distribution. Second, the relationship between public education and inequality can be either positive or negative. Calibrating our model to US state data, we find that a significant share of states faces a trade-off between increasing growth and decreasing inequality through public education spending. We find that this trade-off is overall more likely in states with higher public education expenditures, teacher employment share and relative wage, and intergenerational mobility. Finally, the existence of such a trade-off depends on how public education spending is financed.

Crowding in Private Quality: The Equilibrium Effects of Public Spending in Education

Crowding in Private Quality: The Equilibrium Effects of Public Spending in Education

Crowding in Private Quality: The Equilibrium Effects of Public Spending in Education

Crowding in Private Quality: The Equilibrium Effects of Public Spending in Education