Public education is usually seen as having at least two desirable effects: fostering economic growth and reducing … teachers. First, we show that the impact of public education expenditures on economic growth depends both on the level of these … education spending and income inequality can be U-shaped. We provide empirical evidence for this U-shaped relationship. Finally …

We develop a general equilibrium overlapping generations model which is based on the view that education makes workers … increase productivity. One important implication of the model is that the enrolment rate to education has a negative effect on … relationship between education and economic growth that has been found in the empirical macroeconomic literature. Conversely, for a …

In this paper we study the quantitative macroeconomic effects of public education spending in USA for the post … education spending is justified by externalities in human capital. Our base calibration, based on moderate sized human capital … externalities, suggests that public spending on education is both growth and welfare promoting. However, given that public education …