A new approach is suggested that depends on and measures how spending on higher and basic education is really an investment in the future, not consumption spending. This is a vital distinction because investment in human capital contributes heavily to growth and development, but also to higher state tax revenue and lower Medicaid, child care,…

Previous empirical literature finds that government expenditure on higher education has a negative, or null, effect on U.S. economic growth rates. This empirical result may be driven by omission of an important variable--the privatization of higher education. Using state-level panel data from 1970 to 2005, this analysis investigates whether the…

Explores economic effects of increased educational expenditures on a state's economy, based on a proposal to shift $50 million from noneducational services to public education in the Arkansas state budget. This would generate a net gain of $13.1 million in total personal income and a $1 million net revenue gain. (Contains 17 footnotes.) (MLH)

Assesses the economic benefits derived by Texas teachers in 1978-79 from their investment in teacher education and compares Texas teachers' returns on education to those of White workers with high school or higher education degrees. Concludes that Texas teachers' investments in education were not profitable at any degree level. (Author/RW)