Economics at your fingertips  

Private versus public financing of education and endogenous growth

Jean-Pierre Vidal () and Michael Bräuninger ()
Additional contact information
Jean-Pierre Vidal: GREQAM, Centre National de la Recherche Scientifique, 2 rue de la Charité, 13002 Marseille, France

Journal of Population Economics, 2000, vol. 13, issue 3, 387-401

Abstract: This paper examines interactions between education policy and growth. The analysis is carried out in an OLG model with two types of individuals: skilled and unskilled. An increase in public education reduces private costs of education, increases the proportion of skilled individuals, and tends to promote growth. On the other hand, education spending crowds out physical capital and reduces learning-by-doing. A marginal increase in the education subsidy can lower growth. It is yet shown that pure public education maximizes the long-run growth rate. Importantly, a partial subsidy to education can result in lower growth than pure private education.

Keywords: Growth; ·; education; ·; inequality; ·; overlapping; generations (search for similar items in EconPapers)
JEL-codes: E10 F43 O40 O41 (search for similar items in EconPapers)
Date: 2000-09-11
Note: Received: 7 March 1999/Accepted: 25 November 1999
References: Add references at CitEc
Citations: View citations in EconPapers (15) Track citations by RSS feed

Downloads: (external link) (application/pdf)
Access to the full text of the articles in this series is restricted

Related works:
Working Paper: Private Versus Public Financing of Education and Endogenous Growth (1999)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link:

Ordering information: This journal article can be ordered from
http://www.springer. ... tion/journal/148/PS2

Access Statistics for this article

Journal of Population Economics is currently edited by K.F. Zimmermann

More articles in Journal of Population Economics from Springer, European Society for Population Economics Contact information at EDIRC.
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().

Page updated 2021-10-17
Handle: RePEc:spr:jopoec:v:13:y:2000:i:3:p:387-401