EconPapers    
Economics at your fingertips  
 

The optimum size of public education spending: panel data evidence

Ivan Trofimov

MPRA Paper from University Library of Munich, Germany

Abstract: The paper examines the presence of positive effect of public education spending in a panel of 50 developed, developing and transition economies (over the 1980-2012 period) on the level and growth of output, and, provided such effect holds, considers the optimal provision of public education spending. The econometric methodology relies on panel unit root and cross-sectional dependence tests, panel regression with fixed effects, and panel quantile model with fixed effects. It is demonstrated that public education spending is productive at the margin under alternative specifications, and has positive externalities on the private economy, while the factor productivity in the government sector is higher than in the private. For the panel as a whole, the public education tended to be under-provided (the optimal level of 5.05% of GDP compared to the actual average level of 4.14% of GDP); however, the over-provision is observed in the slow-growing economies in the lower quantiles.

Keywords: Education expenditure; growth; government size, developing countries (search for similar items in EconPapers)
JEL-codes: C22 H52 I25 (search for similar items in EconPapers)
Date: 2020-05-17
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
https://mpra.ub.uni-muenchen.de/106847/1/MPRA_paper_106847.pdf original version (application/pdf)

Related works:
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: https://EconPapers.repec.org/RePEc:pra:mprapa:106847

Access Statistics for this paper

More papers in MPRA Paper from University Library of Munich, Germany Ludwigstraße 33, D-80539 Munich, Germany. Contact information at EDIRC.
Bibliographic data for series maintained by Joachim Winter ().

 
Page updated 2025-03-19
Handle: RePEc:pra:mprapa:106847