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

With Nicole Simpson and Marc Tomljanovich American Economic Review Papers and Procedures, May 2007, Vol. 97, pp. 393-397.

Abstract: Empirical studies have been unable to provide a consistent answer regarding the long-run relationship between government education expenditures and per-capita output growth. In this paper, we develop a simple endogenous growth model whereby growth is a function of both government education expenditures and taxation. Using pooled data from 1960 to 2000 for 83 countries, we test our growth equation and find that imposing the government budget constraint is imperative when estimating the relationship between expenditures and growth. Furthermore, we find a robust positive relationship between education expenditures and growth for rich countries when the method of finance is considered but no significant relationship for poor and middle-income countries.