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List of Figures=vii
List of Tables=viii
Preface=ix
Acknowledgements=x
1. THE APPLICATION OF ECONOMICS TO EDUCATION=1
1.1. An Economic Description of Education=1
1.2. Economic Methods=6
2. HUMAN CAPITAL AND EDUCATION=16
2.1. Introduction=16
2.2. The Basic Human Capital Model=17
2.3. Investment Appraisal=27
2.4. Over-education=35
2.5. Information Costs and Education=40
2.6. Issues and Conclusions=46
3. THE THEORY OF ENROLMENT CHOICE=48
3.1. Introduction=48
3.2. Uncertainty and Risk=49
3.3. The Demand for Education=54
3.4. Allocations of Education=59
3.5. Issues and Conclusions=70
4. THE THEORY OF THE ENTERPRISE=72
4.1. Introduction=72
4.2. Production Function Models=73
4.3. Cost and Revenue Functions=84
4.4. Issues and Conclusions=94
5. EVIDENCE ON EDUCATION ENTERPRISES=96
5.1. Resource Effects=96
5.2. Evidence on Resource Effects=97
5.3. Specification of Resource Models=103
5.4. Scale Effects=108
5.5. Issues and Conclusions=117
6. FACTOR INPUTS=120
6.1. Concepts=120
6.2. Teacher Inputs=121
6.3. Other Inputs=133
6.4. Factor Complementarity=140
6.5. Issues and Conclusions=142
7. THE THEORY OF THE MARKET=144
7.1. Introduction=144
7.2. Market Structures=145
7.3. Evidence About the Market=149
7.4. Exchange Mechanisms=154
7.5. Issues and Conclusions=161
8. THE ROLE OF GOVERNMENT IN EDUCATION=163
8.1. Introduction=163
8.2. The Government in Education=164
8.3. How Government Funds Education=166
8.4. The Costs of Government Provision=179
8.5. Issues and Conclusions=190
9. AGGREGATE EFFECTS OF EDUCATION=193
9.1. Concepts=193
9.2. Social Effects=194
9.3. Economic Growth Effects=200
9.4. Macro-economic Effects Reconsidered=203
9.5. Issues and Conclusions=207
10. EDUCATION POLICY USING ECONOMICS
10.1. Economic Concepts in Education=209
10.2. Directions for Policy=213
Notes=218
References=222
Index=250
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Human capital theory is discussed and evidence on rates of return and the benefits of training is presented. The demand for education is described, with an assessment of how pervasive wealth effects are in education systems. The author discusses the efficiency of education providers, including teacher supply, and identifies the optimal rules for teacher deployment. Education markets, the role of governments and the macroeconomics of education are all considered along with the key social benefits of education.
Using evidence from a range of countries, but particularly the UK and the US, Clive Belfield provides an appreciation of the depth and breadth of the literature of the economic study of education in one easily accessible volume. This will be a valuable text for scholars of economics and education, and will be welcomed by all those interested in obtaining an overview of the field and in understanding the key principles economists use.
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