Estimation of drivers of public education expenditure: Baumol's effect revisited

In: IMF working paper 15/178

Abstract

Cover -- Contents -- Abstract -- I. Introduction -- II. Background -- A. Decomposition of Changes in Public Education Spending -- B. Decomposition of Changes in Per-Pupil Education Spending -- III. A Model -- IV. Data and Descriptive Analysis -- A. Wage Premium in Education -- B. Summary Statistics -- V. Testing the Baumol's Hypothesis -- VI. Robustness Checks -- A. Intertemporal Parameter Stability -- B. Asymmetry by Country Groups -- C. A Comparison between Basic and Higher Education Expenditure -- VII. Conclusion -- Tables -- 1. Summary Statistics -- 2. Estimates of First-Differenced Model