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- Title
Schooling and Public Capital in a Model of Endogenous Growth.
- Authors
AGÉNOR, PIERRE-RICHARD
- Abstract
This paper studies the allocation of public spending between education services and infrastructure investment in an endogenous growth model of a developing economy where public capital in infrastructure affects human capital accumulation. The balanced growth path is derived and the possibility of local indeterminacy is discussed. Dynamics associated with a budget-neutral reallocation of spending from education to infrastructure are studied through numerical simulations. The growth-maximizing share of investment in infrastructure is shown to depend on the goods production technology and the 'productiveness' of infrastructure in the schooling technology. Properties of the welfare-maximizing solution are also discussed.
- Subjects
PUBLIC spending; INTERNATIONAL economic assistance; EDUCATIONAL finance; INFRASTRUCTURE (Economics); ENDOGENOUS growth (Economics); HUMAN capital; LABOR supply; EDUCATIONAL technology; INVESTMENTS; DEVELOPING countries
- Publication
Economica, 2011, Vol 78, Issue 309, p108
- ISSN
0013-0427
- Publication type
Article
- DOI
10.1111/j.1468-0335.2009.00794.x