This paper studies the implications of education quality for the optimal allocation of public expenditure in a simple endogenous growth model with mandatory schooling and infrastructure spillovers. Education quality is inversely related to the degree of congestion in schools, which is itself measured in two ways: the proportions of teachers and students in the population, and the ratio of government spending on education to teaching capacity. The balanced-growth path is derived and the transitional dynamics associated with an increase in the degree of congestion are analysed. The growth-maximizing share of government spending on education is shown to depend negatively on the congestion parameter. Policy implications for the ‘quantity versus quality’ debate in schooling are also discussed."> This paper studies the implications of education quality for the optimal allocation of public expenditure in a simple endogenous growth model with mandatory schooling and infrastructure spillovers. Education quality is inversely related to the degree of congestion in schools, which is itself measured in two ways: the proportions of teachers and students in the population, and the ratio of government spending on education to teaching capacity. The balanced-growth path is derived and the transitional dynamics associated with an increase in the degree of congestion are analysed. The growth-maximizing share of government spending on education is shown to depend negatively on the congestion parameter. Policy implications for the ‘quantity versus quality’ debate in schooling are also discussed."> This paper studies the implications of education quality for the optimal allocation of public expenditure in a simple endogenous growth model with manda">
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Infrastructure, Public Education And Growth With Congestion Costs

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  • Pierre-Richard Agénor
Abstract
type="main" xml:lang="en"> This paper studies the implications of education quality for the optimal allocation of public expenditure in a simple endogenous growth model with mandatory schooling and infrastructure spillovers. Education quality is inversely related to the degree of congestion in schools, which is itself measured in two ways: the proportions of teachers and students in the population, and the ratio of government spending on education to teaching capacity. The balanced-growth path is derived and the transitional dynamics associated with an increase in the degree of congestion are analysed. The growth-maximizing share of government spending on education is shown to depend negatively on the congestion parameter. Policy implications for the ‘quantity versus quality’ debate in schooling are also discussed.

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  • Pierre-Richard Agénor, 2012. "Infrastructure, Public Education And Growth With Congestion Costs," Bulletin of Economic Research, Wiley Blackwell, vol. 64(4), pages 449-469, October.
    • Handle: RePEc:bla:buecrs:v:64:y:2012:i:4:p:449-469
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    2. Agénor, Pierre-Richard, 2008. "Health and infrastructure in a model of endogenous growth," Journal of Macroeconomics, Elsevier, vol. 30(4), pages 1407-1422, December.
    3. Pinto Moreira, Emmanuel & Bayraktar, Nihal, 2008. "Foreign aid, growth and poverty: A policy framework for Niger," Journal of Policy Modeling, Elsevier, vol. 30(3), pages 523-539.
    4. Antonio Soares Martins Neto & Gilberto Tadeu Lima, 2017. "Competitive Exchange Rate and Public Infrastructure in a Macrodynamic of Economic Growth," Metroeconomica, Wiley Blackwell, vol. 68(4), pages 792-815, November.
    5. Pierre‐Richard Agénor & Kyriakos C. Neanidis, 2011. "The Allocation Of Public Expenditure And Economic Growth," Manchester School, University of Manchester, vol. 79(4), pages 899-931, July.
    6. Habiyaremye, Alexis, 2016. "Is Sino-African trade exacerbating resource dependence in Africa?," Structural Change and Economic Dynamics, Elsevier, vol. 37(C), pages 1-12.
    7. Chiara DEL BO, 2009. "Recent advances in public investment, fiscal policy and growth," Departmental Working Papers 2009-25, Department of Economics, Management and Quantitative Methods at Università degli Studi di Milano.
    8. Pierre‐Richard Agénor, 2011. "Schooling and Public Capital in a Model of Endogenous Growth," Economica, London School of Economics and Political Science, vol. 78(309), pages 108-132, January.
    9. Rangan Gupta & Lardo Stander & Andrea Vaona, 2023. "Openness and growth: Is the relationship non‐linear?," International Journal of Finance & Economics, John Wiley & Sons, Ltd., vol. 28(3), pages 3071-3099, July.
    10. Hallonsten, Jan Simon & Ziesemer, Thomas, 2016. "A semi-endogenous growth model for developing countries with public factors, imported capital goods, and limited export demand," MERIT Working Papers 2016-004, United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT).
    11. Escobar-Posada, Rolando A. & Monteiro, Goncalo, 2015. "Long-run growth and welfare in a two sector endogenous growth model with productive and non-productive government expenditure," Journal of Macroeconomics, Elsevier, vol. 46(C), pages 218-234.
    12. Maria Jennifer Grisorio & Francesco Prota, 2015. "The Impact of Fiscal Decentralization on the Composition of Public Expenditure: Panel Data Evidence from Italy," Regional Studies, Taylor & Francis Journals, vol. 49(12), pages 1941-1956, December.

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