The dominant role played by the state in the financing,
regulation, and provision of primary and secondary education
reflects the widely-held belief that education is necessary for
personal and societal well-being. The economic organization of
education depends on political as well as market mechanisms to
resolve issues that arise because of contrasting views on such
matters as income inequality, social mobility, and diversity.
This book provides the theoretical framework necessary for
understanding the political economy of education—the complex
relationship of education, economic growth, and income
distribution—and for formulating effective policies to improve
the financing and provision of education. The relatively simple
models developed illustrate the use of analytical tools for
understanding central policy issues. After offering a historical
overview of the development of public education and a review of
current econometric evidence on education, growth, and income
distribution, the authors lay the theor