Education and Productivity.

In this paper, the author looks at the contribution of education to economic growth and examines the desirability of public vs private financing of education from the standpoint of economic efficiency and equity. The author sees expenditures on education as an investment in human capital, the contribution to output of such an investment depending on the amount of the investment and the realized rate of return. He compares the rates of return for differing levels of education to the rates of return on nonhuman capital in the private domestic economy. In addition, the author discusses the financing of education in light of the social and private benefits that accrue from education. The paper concludes with a few specific comments about the benefits and financing of higher education. (DN)