Public Policy for Efficient Education

Fisher, Walter H. and Keuschnigg, Christian (November 2000) Public Policy for Efficient Education. Former Series > Working Paper Series > IHS Economics Series 90


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Abstract: This paper studies the role of public policy to promote efficiency in human capital accumulation in the representative agent framework. Agents accumulate human capital by spending time in home study and in publicly provided schools. The individual faces an aggregate externality in the accumulation of skills. In addition, the return to time spent in school is subject to congestion. To correct these distortions, a tuition fee combined with personal stipends is required, which shifts education in schools and universities to noninstitutional forms of learning such as home study. The dynamic effects of shifts in education policy as well as their welfare implications are also calculated in the paper.;

Item Type: IHS Series
Keywords: 'Education' 'Human capital accumulation' 'Optimal policy'
Classification Codes (e.g. JEL): H21, H42, I21, I28
Date Deposited: 26 Sep 2014 10:37
Last Modified: 26 Sep 2019 16:50
ISBN: 1605-7996

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