In this paper, we quantitatively assess the welfare implications of alternative public education spending rules. To … this end, we employ a dynamic stochastic general equilibrium model in which human capital externalities and public … education expenditures, financed by distorting taxes, enhance the productivity of private education choices. We allow public …

externalities (social returns to education) there exists a range of microloan amounts that are growth depressing and welfare … divert investment away from human capital: by failing to internalize the social returns to education, households …

In this paper, we quantitatively assess the welfare implications of alternative public education spending rules. To … this end, we employ a dynamic stochastic general equilibrium model in which human capital externalities and public … education expenditures, financed by distorting taxes, enhance the productivity of private education choices. We allow public …