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Public education expenditures, taxation, and growth: Linking data to theory.

Allocating government education expenditures across K-12 and college education.

How different is the cyclical behavior of home production across countries?

Labor market trends with balanced growth.

A simple economic theory of skill accumulation and schooling decisions.

Public schooling, college subsidies and growth.

Public education expenditures and growth.

School finance litigation, tax and expenditure limitations, and education spending: an empirical analysis.

The interrelatedness of tax and expenditure limitations and education finance reform.

The welfare implications of factor taxation with rising wage inequality.

Can real world interest rates explain business cycles in small open economies?

A welfare analysis of policy responses to the skilled wage premium.

 

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Allocating government education expenditures across K-12 and college education.

With Steve Cassou and Beth Ingram, forthcoming, Economic Theory.

Abstract: As of the late 1990s, public support for education in the U.S. comprised approximately 7.1% of GDP; about 60% of that support was directed at K-12 education and the remainder at postsecondary (college) education. We study the output and welfare implications of public spending on both levels of education. The model we develop features agents who are heterogeneous with respect to ability and choose whether to pursue higher education. We show that higher-ability agents support greater expenditures at both levels. When public education expenditures are low, all agents prefer that the budget be dedicated solely to K-12 education and when expenditures are large enough, all prefer that some portion of the budget be allocated to college education. Spending increments beyond this threshold should be allocated disproportionately to college education. For some agents, utility as a function of subsidies is two-peaked so that large increases in tuition subsidies may be supported while smaller increases would not.