Public Education Spending and Poverty in Burkina Faso: A Computable General Equilibrium Approach
European Journal of Economics, Finance and Administrative Sciences, Issue 44 (2012); ISSN 1450-2275
22 Pages Posted: 10 Jul 2012
Date Written: February 10, 2012
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.
Keywords: Computable general equilibrium model, public education spending, Burkina Faso
JEL Classification: C6, H5, I2, I3, J2, O5
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