Public versus private investment and growth in a hierarchical education system

Public funding of higher education

“…The literature has some support for this claim (see, e.g., Bassanini and Scarpenta, 2001;Caucutt and Krishna, 2003;Blankenau, 2005;Arcalean and Schiopu, 2008). We show that in our framework such result depends on certain values for the parameters: (28) makes an assumption about the elasticity of the threshold levels for different levels of public funding.…”

“…Arcalean and Schiopu (2008) study the interaction between public and private spending in a two-stage education system. As in our framework, they observe that increased enrollment in tertiary education does not always imply higher economic growth.…”

National innovation and knowledge performance: the role of higher education teaching and training

“…This result provides evidence that both approaches and policies can be combined (Arcalean & Schiopu, 2010) and when properly implemented, can lead to improved levels of innovation and knowledge performance (Muscio et al, 2013). This also explains the emerging view which places emphasis upon the complementarities between the different types of funding strategies (Arcalean & Schiopu, 2010). It is also worth noting that expecting to secure immediate results from simply increasing HE funding can be misleading; an effective, high quality HE teaching and learning system is also required (Geuna & Muscio, 2009) The objective of our last hypothesis (H4) was to investigate whether there were any differences between the 'Ivory Tower' and 'Application Driven' approaches in supporting the national innovation performance of a country.…”

“…This lack of consensus and the continuing emergence of contrasting views between the two main schools (public funding versus market mechanisms) can be explained in part by the heterogeneity of the HE system (Ansell, 2008). This result provides evidence that both approaches and policies can be combined (Arcalean & Schiopu, 2010) and when properly implemented, can lead to improved levels of innovation and knowledge performance (Muscio et al, 2013). This also explains the emerging view which places emphasis upon the complementarities between the different types of funding strategies (Arcalean & Schiopu, 2010).…”

Employment by age, education, and economic growth: effects of fiscal policy composition in general equilibrium

“…In contrast to goods production functions, there is not much empirical evidence and no consensus about the determinants of human capital growth, nor about the underlying functional form and parameter values (Bouzahzah, de la Croix, and Docquier 2002). The literature shows a variety of functions, typically including one or two of the following inputs: individual time allocated to education, private expenditures on education by individuals themselves or by their parents, and government expenditures on education (e.g., Lucas 1988, Glomm and Ravikumar 1992, Docquier and Michel 1999, Kaganovich and Zilcha 1999, Bouzahzah, de la Croix, and Docquier 2002, Fougère et al 2009, Arcalean and Schiopu 2010. With two inputs, the adopted functional form is very often Cobb-Douglas (e.g., Glomm and Ravikumar 1992, Docquier and Michel 1999, Kaganovich and Zilcha 1999.…”