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...

We consider the contribution of public education to growth through its role in building social capital instilling common values and norms that lower economic transaction costs and reduce social tensions between different population groups. This is modeled in the context of a political economy...