Schools or Hospitals? Mortality, Allocation of Government Expenditure and Growth
June 25, 2009
The allocation of resources between education and health is an important and puzzling decision for the governments in countries with high mortality rate. We build a three-period overlapping generation model with mortality risk and show that if public education expenditure exceeds a critical value, young cohort loses incentives to study and growth effects of public education expenditure becomes negative.
Number of Pages in PDF File: 11
Keywords: Public Education Expenditure, Public Health Expenditure, Mortality, Growth
JEL Classification: H3, H5, O41working papers series
Date posted: June 26, 2009
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