Bougheas, Spiros P.; Kneller, Richard Anthony; Riezman, … - 2009
We consider the optimal education policies of a small economy whose government has a limited budget. Initially, the … economy is closed and the government chooses its education policy to maximize welfare under autarky. Then the economy trades … with the rest of the world. Lastly, the government chooses a new education policy that maximizes welfare under trade. Is it …