Education public financing and economic growth: an endogenous growth model versus evidence

Tiago Sequeira, Elsa Vilar Martins

Research output: Contribution to journalArticlepeer-review

9 Citations (Scopus)

Abstract

Using an Endogenous Growth Model with physical and human capital and unemployment (Mauro and Carmeci in J Macroecon 25:123-137, 2003), we study the effects of subsidies to education in economic growth. According to the model, we conclude that government subsidies to education only enhance economic growth conditional on unemployment and that this relationship is negatively influenced by unemployment. We provide evidence from a broad panel data of countries that confirms the importance of unemployment in the relationship between subsidies to education and economic growth but dismiss its importance as a direct determinant of economic growth.
Original languageEnglish
Pages (from-to)361-377
JournalEmpirical Economics
Volume35
Issue number2
DOIs
Publication statusPublished - 1 Jan 2008

Keywords

  • education subsidies
  • economic growth
  • panel estimation

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