Government Expenditure on the Public Education System

• 成果类型: Article
• 署名作者: Fu, Chao; Ishimaru, Shoya; Kennan, John
• 署名单位: University of Wisconsin System; University of Wisconsin Madison; National Bureau of Economic Research; Hitotsubashi University; University of Wisconsin System; University of Wisconsin Madison
• 刊物名称: INTERNATIONAL ECONOMIC REVIEW
• ISSN/ISSBN: 0020-6598
• DOI: 10.1111/iere.12659
• 发表日期: 2024
• 页码: 43-73
• 关键词: private school vouchers; financial-aid; college; persistence; TECHNOLOGY; models; IMPACT

摘要

We investigate equilibrium impacts of federal policies such as free-college proposals, taking into account that human capital is cumulative and that state governments have resource constraints. In our model, a state government cares about household welfare and aggregate educational attainment. The government chooses income tax rates, per-student expenditures on K-12 and college education, college tuition, and the provision of other public goods. We estimate the model using U.S. data. Our simulations suggest that free-college policies would decrease state expenditure on education. More students would obtain college degrees. Most households would pay for the free-college policies through negative welfare effects.