Allocating Government Education Expenditures Across K-12 and College Education

Blankenau, William; Cassou, Steven P.; Ingram, Beth F.

doi:10.1007/s00199-006-0084-8

Cited by 32 publications

(41 citation statements)

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“…This result contradicts those of previous studies in the literature, such as Blankenau et al (2007). In these studies, the purpose of such a subsidy is to increase the enrollment rate in higher education.…”

Section: Introductioncontrasting

confidence: 72%

“…This production function is common in the hierarchical education literature and is similar to the one used by Blankenau et al (2007) and Viaene and Zilcha (2013). It differs from Blankenau et al (2007) in one aspects: they introduce heterogeneity in innate ability during this stage of education. There is a resource cost for acquiring higher education in the form of a tuition fee, h, which may be (partially) subsidized by the government.…”

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confidence: 95%

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Public Investment in a Hierarchical Educational System With Capital–skill Complementarity

Sarid

2016

Macroecon. Dynam.

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In this study I bring together two different literatures: the hierarchical education literature and the skill-biased growth literature. In an overlapping-generations model I introduce capital-skill complementarity into a hierarchical education system. I obtain results that differ qualitatively from previous studies, among which are the following: (i) At earlier stages of development, basically educated labor contributes to growth more than highly educated labor. The opposite occurs at later stages. (ii) Even when all individuals acquire higher education, a growth-enhancing policy subsidizes higher education. (iii) In a growth-enhancing policy, the share of public resources allocated to basic education declines as the economy grows. (iv) The enrollment rate evolves in an S-shaped pattern, as occurred in several OECD countries.

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Section: Introductioncontrasting

confidence: 72%

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confidence: 95%

Public Investment in a Hierarchical Educational System With Capital–skill Complementarity

Sarid

2016

Macroecon. Dynam.

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“…Economies at different stages of development, with a different composition of the labor force between skilled and low-skilled workers, are then expected to reach different political equilibria regarding this educational budget allocation. We obtain that in a society with a majority of low-skilled workers with low endowments the median voter is in favour of not allocating public resources to college education (Blankenau et al, 2007a). This result is clear in a small open economy:…”

Section: Political Equilibriummentioning

confidence: 77%

Public funding of higher education

Viaene

Zilcha

2013

Journal of Public Economics

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Standard-Nutzungsbedingungen:Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Zwecken und zum Privatgebrauch gespeichert und kopiert werden.Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich machen, vertreiben oder anderweitig nutzen.Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, gelten abweichend von diesen Nutzungsbedingungen die in der dort genannten Lizenz gewährten Nutzungsrechte. Terms of use: Documents in Public Funding of Higher Education AbstractRecent criticism from different sides has expressed the view that, with scarce resources, there is little justification for massive public funding of higher education. Central to the debate is the conjecture that colleges and universities use their resources inefficiently and focus insufficiently on their mission to expand students' human potential. Our aim in this paper is to examine the theoretical premises of this conjecture in a small open economy and uncover the conditions under which public investment in higher education is efficient and desirable. We analyze non-stationary equilibria of an OLG economy, characterized by perfect capital mobility, intergenerational transfers and a hierarchical education system. The government uses income tax revenues to finance basic education and support higher education that generates skilled labor. Given this, the following issues are considered: (a) the impact of education and international markets on t he equilibrium number of low-skilled and skilled workers in each generation; (b) the economic efficiency of public subsidies to higher education in generating skilled human capital; (c) the endogenous support for a government's educational policies found in a political equilibrium.JEL-Code: D910, E250, H520.

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“…It builds on a growing literature that emphasizes the hierarchical structure of the education process one of whose important new insights is that the benefits from investing in superior quality of education at a given stage may critically depend, and even be contingent upon sufficient preparation at its prior stage. Driskill and Horowitz (2002), Su (2004Su ( , 2006, Blankenau (2005), Blankenau, Cassou, and Ingram (2007), Cunha and Heckman (2007), and Gilpin and Kaganovich (2012) model education as a sequence of stages, where human capital output from lower stages acts as an input in the education technology at higher stages. In particular, the models of Su (2004Su ( , 2006 and Gilpin and Kaganovich (2012) feature a curricular threshold standard at the higher education stage, which sets the minimum pre-college preparation level necessary for making educational gains in college.…”

Section: Literature Reviewmentioning

confidence: 99%

College curriculum, diverging selectivity, and enrollment expansion

Kaganovich

2018

Econ Theory

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Standard-Nutzungsbedingungen:Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Zwecken und zum Privatgebrauch gespeichert und kopiert werden.Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich machen, vertreiben oder anderweitig nutzen.Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, gelten abweichend von diesen Nutzungsbedingungen die in der dort genannten Lizenz gewährten Nutzungsrechte. We analyze the impact of expansion of higher education on student outcomes in the context of competition among colleges which differentiate themselves horizontally by setting curricular standards. When public or economic pressures compel less selective colleges to lower their curricular demands, low-ability students benefit at the expense of medium-ability students. This reduces competitive pressure faced by more selective colleges, which therefore adopt more demanding curricula to better serve their most able students. This stylized model of curricular product differentiation in higher education offers an explanation for the diverging selectivity trends of American colleges. It also appears consistent with the U-shaped earnings growth profile we observe among college-educated workers in the U.S. Terms of use: Documents inJEL-Codes: I210, I230, I240, J240, H440.Keywords: curricular standard, higher education, college selectivity, enrollment expansion, income distribution. Michael Kaganovich Department of Economics

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Allocating Government Education Expenditures Across K-12 and College Education

Abstract: Government education expenditures, Human capital, Heterogeneous agents, Life-cycle model, E62, I22, H52, J24,

Cited by 32 publications

References 34 publications

Public Investment in a Hierarchical Educational System With Capital–skill Complementarity

Public Investment in a Hierarchical Educational System With Capital–skill Complementarity

Public funding of higher education

College curriculum, diverging selectivity, and enrollment expansion

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