Schooling and Public Capital in a Model of Endogenous Growth

Datos Bibliográficos

ID9727448
AutoresPierre‐Richard Agénor (0000-0001-5720-3544, University of Manchester, autor de correspondencia)
Año2011
Volumen78
Número309
Páginas108-132
Fecha de publicación2011-01-01
Peer ReviewedSí
Open AccessSí
TipoARTICLE
RevistaEconomica (JOURNAL)
Identificadores de la revistaISSN: 0013-0427 • E-ISSN: 1468-0335
EditorialWiley (PUBLISHER • GB)
DOI10.1111/j.1468-0335.2009.00794.x
OpenAlexW2135666443
IdiomaEN
Citas recibidas6
Referencias citadas44

This paper studies the allocation of public spending between education services and infrastructure investment in an endogenous growth model of a developing economy where public capital in infrastructure affects human capital accumulation. The balanced growth path is derived and the possibility of local indeterminacy is discussed. Dynamics associated with a budget‐neutral reallocation of spending from education to infrastructure are studied through numerical simulations. The growth‐maximizing share of investment in infrastructure is shown to depend on the goods production technology and the ‘productiveness’ of infrastructure in the schooling technology. Properties of the welfare‐maximizing solution are also discussed

Capital (architecture) · Capital deepening · Capital formation · Developing country · Economic growth · Economics · Endogenous growth theory · Financial capital · Growth model · Human capital · Indeterminacy (philosophy) · Investment (military) · Market economy · Microeconomics · Production (economics) · Public capital · Public economics · Public good · Public infrastructure · Public investment · Public spending · Welfare · Economic Growth and Productivity · Fiscal Policy and Economic Growth · Local Government Finance and Decentralization