Public education expenditures, taxation and growth: a state-level analysis

Bebonchu Atems and Qingyang Liu

Applied Economics Letters, 2020, vol. 27, issue 21, 1730-1734

Abstract: In a 2007 paper, Blankenau, Simpson, and Tomljanovich (BST) find that public education expenditures have a positive impact on growth only after controlling for the government budget constraint. This note estimates a dynamic panel data model with U.S. state-level data over the period 1963–2015. Similar to BST, we find evidence of a positive relationship between public education expenditures and growth. Unlike BST, this relationship is not sensitive to the imposition of the government budget constraint.

Date: 2020
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DOI: 10.1080/13504851.2020.1717424

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