期刊名称：Cardiff Economics Working Papers / Cardiff University, Cardiff Business School
印刷版ISSN：1749-6101
出版年度：2018
期号：26
语种：English
出版社：Cardiff University
摘要：This paper provides evidence that private financing of education impacts economic growth differently at different levels of credit market development. Within an overlapping generations framework, we show that the effect of private financing of education on economic growth is positive when credit markets are adequately developed, but negative if sufficiently low levels of credit market development occur alongside relatively high private financing intensities. We also demonstrate conditions under which incomplete credit markets outperform, in terms of growth and dynamic efficiency, the case of complete markets. Our estimates of the reduced-form growth relationships are statistically significant and robust under various controls and samples. We argue that private financing of education coupled with differing levels of credit market development may shed light on large cross-country differences in savings and growth.
