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

Samuel Luethi and Maria Zumbuehl
Authors registered in the RePEc Author Service: Samuel Lüthi ()

No 198, Economics of Education Working Paper Series from University of Zurich, Department of Business Administration (IBW)

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 a potential effect of 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.

Keywords: Public education spending; demographic change (search for similar items in EconPapers)
JEL-codes: H52 I22 J11 R51 (search for similar items in EconPapers)
Pages: 26 pages
Date: 2022-11
New Economics Papers: this item is included in nep-edu and nep-ure
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Persistent link: https://EconPapers.repec.org/RePEc:iso:educat:0198

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