{ "title": "Composition of Government Expenditures and Demand for Education in Developing Countries", "publication": "IMF Working Papers, May 1, 2002", "sourceUrl": "https://www.imf.org/en/publications/wp/issues/2016/12/30/composition-of-government-expenditures-and-demand-for-education-in-developing-countries-15733", "canonical": "https://www.imf.org/en/publications/wp/issues/2016/12/30/composition-of-government-expenditures-and-demand-for-education-in-developing-countries-15733", "overlayPath": "/en/publications/wp/issues/2016/12/30/composition-of-government-expenditures-and-demand-for-education-in-developing-countries-15733/index.md", "summary": "This paper addresses the potential effects on human capital accumulation and economic growth of the alternative compositions of public expenditures in the context of a computable dynamic general equilibrium model of overlapping generations and heterogeneous agents in which altruistic parents make sc", "sections": [ { "heading": "Summary", "content": "- Paper addresses potential effects on human capital accumulation and economic growth of alternative compositions of public expenditures.\n- Uses a computable dynamic general equilibrium model of overlapping generations and heterogeneous agents in which altruistic parents make schooling decisions for their children.\n- Model includes fixed and variable costs for different levels of schooling.\n- Main synthesized results:\n - Reducing household costs of primary education has the largest positive impact on growth and poverty reduction in the short run.\n - An increase in higher education spending increases long-run growth.\n - These effects can be substantial even when increasing education spending comes at the expense of public infrastructure investment." }, { "heading": "Model and Scope", "content": "- Framework: computable dynamic general equilibrium model of overlapping generations and heterogeneous agents.\n- Behavioral assumption: altruistic parents choose schooling for their children.\n- Cost structure: presence of fixed and variable costs for different levels of schooling.\n- Geographic and topical coverage (as indexed in the source): East Asia; South Asia; Sub-Saharan Africa; Middle East, North Africa; low income; education; Education spending; Government expenditures; Human capital; growth; income; labor; national accounts." }, { "heading": "Key Findings and Statistics", "content": "- Short-run: reducing household costs of primary education yields the largest positive impact on growth and poverty reduction.\n- Long-run: increased spending on higher education raises long-run growth.\n- Trade-offs: positive education effects can be substantial even when education spending increases at the expense of public infrastructure investment.\n- Publication-specific numeric details:\n - Pages: 47\n - Volume: 2002\n - Issue: 078\n - Series: Working Paper No. 2002/078\n - Stock No: WPIEA0782002\n - ISBN: 9781451850116\n - ISSN: 1018-5941\n - DOI: https://doi.org/10.5089/9781451850116.001\n - Publication date: May 1, 2002\n - Authors: John J Matovu, Era Dabla-Norris" }, { "heading": "Policy Implications and Recommendations", "content": "- Prioritize interventions that reduce household costs of primary education to achieve the largest short-run gains in growth and poverty reduction.\n- Maintain or increase higher education spending to support long-run economic growth.\n- When reallocating public expenditures, consider that sizable benefits from shifting toward education can materialize even if accompanied by reductions in public infrastructure investment.\n\nIMF Working Papers — Composition of Government Expenditures and Demand for Education in Developing Countries, John J Matovu and Era Dabla-Norris, May 1, 2002, DOI: https://doi.org/10.5089/9781451850116.001\n\n---\n\n Content in this bundle\n\n- Composition of Government Expenditures and Demand for Education in Developing Countries - WP/02/78\n - Composition of Government Expenditures and Demand for Education in Developing Countries - WP/02/78 (Markdown version){rel=\"alternate\" type=\"text/markdown\"}\n - Composition of Government Expenditures and Demand for Education in Developing Countries - WP/02/78 (PDF){rel=\"external\" type=\"application/pdf\"}\n\n---\n\nSource: https://www.imf.org/en/publications/wp/issues/2016/12/30/composition-of-government-expenditures-and-demand-for-education-in-developing-countries-15733" } ], "bullets": [ "[Markdown version](/en/publications/wp/issues/2016/12/30/composition-of-government-expenditures-and-demand-for-education-in-developing-countries-15733/index.md)", "[Structured JSON version](/en/publications/wp/issues/2016/12/30/composition-of-government-expenditures-and-demand-for-education-in-developing-countries-15733/index.json)", "[Bundle manifest](/en/publications/wp/issues/2016/12/30/composition-of-government-expenditures-and-demand-for-education-in-developing-countries-15733/bundle-manifest.json)", "Authors: John J Matovu, Era Dabla-Norris", "Published: May 1, 2002", "Series: IMF Working Papers", "DOI: https://doi.org/10.5089/9781451850116.001", "Paper addresses potential effects on human capital accumulation and economic growth of alternative compositions of public expenditures.", "Uses a computable dynamic general equilibrium model of overlapping generations and heterogeneous agents in which altruistic parents make schooling decisions for their children.", "Model includes fixed and variable costs for different levels of schooling.", "Main synthesized results:", "Framework: computable dynamic general equilibrium model of overlapping generations and heterogeneous agents.", "Behavioral assumption: altruistic parents choose schooling for their children.", "Cost structure: presence of fixed and variable costs for different levels of schooling.", "Geographic and topical coverage (as indexed in the source): East Asia; South Asia; Sub-Saharan Africa; Middle East, North Africa; low income; education; Education spending; Government expenditures; Human capital; growth; income; labor; national accounts.", "Short-run: reducing household costs of primary education yields the largest positive impact on growth and poverty reduction.", "Long-run: increased spending on higher education raises long-run growth.", "Trade-offs: positive education effects can be substantial even when education spending increases at the expense of public infrastructure investment.", "Publication-specific numeric details:", "Prioritize interventions that reduce household costs of primary education to achieve the largest short-run gains in growth and poverty reduction.", "Maintain or increase higher education spending to support long-run economic growth.", "When reallocating public expenditures, consider that sizable benefits from shifting toward education can materialize even if accompanied by reductions in public infrastructure investment.", "**Composition of Government Expenditures and Demand for Education in Developing Countries - WP/02/78**" ], "related": [ { "title": "Composition of Government Expenditures and Demand for Education in Developing Countries - WP/02/78", "role": "document", "sourceUrl": "https://www.imf.org/-/media/websites/imf/imported-full-text-pdf/external/pubs/ft/wp/2002/_wp0278.pdf", "summary": { "path": "/-/media/websites/imf/imported-full-text-pdf/external/pubs/ft/wp/2002/_wp0278.pdf.md", "mime": "text/markdown" }, "binary": { "path": "/-/media/websites/imf/imported-full-text-pdf/external/pubs/ft/wp/2002/_wp0278.pdf", "mime": "application/pdf" } } ], "alternates": { "markdown": "/en/publications/wp/issues/2016/12/30/composition-of-government-expenditures-and-demand-for-education-in-developing-countries-15733/index.md", "json": "/en/publications/wp/issues/2016/12/30/composition-of-government-expenditures-and-demand-for-education-in-developing-countries-15733/index.json", "bundleManifest": "/en/publications/wp/issues/2016/12/30/composition-of-government-expenditures-and-demand-for-education-in-developing-countries-15733/bundle-manifest.json" }, "generatedAtUtc": "2026-09-17T05:43:02.876Z" }