This paper presents an endogenous growth model with human capital, where human capital formation is the result of public education. The government finances expenditures in the schooling sector by the tax revenue and by public deficit. In addition, the government sets the primary surplus such...

To face a debt crisis, countries often implement variousforms of fiscal consolidation policies aiming at addressingfiscal imbalances. This paper investigates how debt andfiscal consolidation could influence government expenditureon education. It shows that increased external debt isassociated...

To face a debt crisis, countries often implement various forms of fiscal consolidation policies aiming at addressing fiscal imbalances. This paper investigates how debt and fiscal consolidation could influence government expenditure on education. It shows that increased external debt is...