Public education expenditures, taxation and growth: a state-level analysis. Issue 21 (14th December 2020)

• Record Type: Journal Article
• Authors: Atems, Bebonchu; Liu, Qingyang
• Is Part Of: Applied economics letters. Volume 27:Issue 21(2020)
• Page Start: 1730
• Page End: 1734
• Publication Date: 2020-12-14
• Subjects: Growth -- education spending -- taxation; E62 -- O47 -- C23; Economics -- Periodicals; Economics, Mathematical -- Periodicals; 330
• DOI: 10.1080/13504851.2020.1717424
• Languages: English
• ISSNs: 1350-4851

Abstract

ABSTRACT: In a 2007 paper, Blankenau, Simpson, and Tomljanovich (BST) find that public education expenditures have a positive impact on growth only after controlling for the government budget constraint. This note estimates a dynamic panel data model with U.S. state-level data over the period 1963–2015. Similar to BST, we find evidence of a positive relationship between public education expenditures and growth. Unlike BST, this relationship is not sensitive to the imposition of the government budget constraint.