Public Education Spending and Poverty in Burkina Faso: A Computable General Equilibrium Approach

Abstract:     
The paper analyses welfare and poverty implications of different options for creating and using fiscal space for public education expenditures. The analysis uses a multi sectoral computable general equilibrium model calibrated for Burkina Faso. Education is demanded by households as an investment to “transform” unqualified workers into qualified workers. The simulations indicate that a 40% across-the-board increase in public subsidies for primary education, financed by an increase in taxes on household income and sales taxes, not only leads to an increase in welfare but also to a decline in the incidence of poverty for all household types.

Number of Pages in PDF File: 22

Keywords: Computable general equilibrium model, public education spending, Burkina Faso

JEL Classification: C6, H5, I2, I3, J2, O5

working papers series