Credit constraints and human capital policies

• 成果类型: Article
• 署名作者: Camargo, Braz; Stein, Guilherme
• 署名单位: Getulio Vargas Foundation
• 刊物名称: JOURNAL OF PUBLIC ECONOMICS
• ISSN/ISSBN: 0047-2727
• DOI: 10.1016/j.jpubeco.2022.104624
• 发表日期: 2022
• 关键词: Government spending; credit constraints; Human capital policies

摘要

We develop a model of voting to show how credit constraints affect a society's demand for government spending on human capital policies, namely, policies that increase the returns to human capital investments. The main result of the model is that a reduction in credit constraints can increase the share of government spending on such policies, with a greater increase in poorer societies. We also provide suggestive cross-country evidence in support of our model by showing that the share of government spending on public education and health is negatively related to measures of credit constraints, with a stronger negative relation in poorer societies. (C) 2022 Elsevier B.V. All rights reserved.