(this is a reproduction of one of the write-ups submitted during placements)
Education has been subject of “welfare state”, since old times, as one of the building blocks of welfare state. From Vedic period all had access to education, where everyone was treated as equal under the “Gurukula” system of delivery of education. The rationale of equity, bridging the social opportunity gap, and development of human capital for nation’s economic growth (Solow 1957) are the most sought arguments for education as public good. As the effect of education is associated with greater levels of research and development expenditures, higher rates of innovation and higher rates of new technology adoption are the
externalities associated with it. Education has its spill over effects for the society, as a whole, apart from the benefits to the individual as a person.
Public goods characterised by non-rivalry, non excludability and externalities. The state has assumed the responsibility for creation of these in form of public education delivery system which has its own inherent cost as a public good. The primary and secondary education delivery system ensures nonexcludability and non-rivalry of resources through free and compulsory education. Also the marginal costs for the same are negligible. The role of books and technology in making education a public good is remarkable when open access and open-ware are taking it to every door-step.
The private education except for the economic exclusion resembles public good but the coverage and spread is less. The probability of market failure due to limited coverage, higher charges and under-investment by individuals (economic rationality model), in case education becomes a part of free market, may lead to negative consequences for society. This calls for state intervention to ensure education as a public good. The positive externality in long term of university education gives the rational to maintain it as a public good. This can be pursued through public funded institutions and promotion of private institution with
mechanisms of control.
The nature of education as a public good is undergoing transformation towards a ‘non pure’ public good, with changing times and evolution of market. Shaw (2010) labels education as ‘bad public good’, due to poor delivery systems, which in turn, directly or indirectly, promotes emergence of private players and market. This seems to be evident from the increasing shift of people towards private education institutions.
Streamlining the above quoted issues can mitigate the problems involved, but at the same time both the public and private investments in the education sector has to be encouraged to bridge the gaps between the need and the capacity of state to undertake the education activity.
(a non-pure public good is one whose marginal cost of supply does rise gently as output is
increased. If the market fails to provide a sufficient quantity of a public good, then there is a loss of economic (social) welfare.)
References
Education has been subject of “welfare state”, since old times, as one of the building blocks of welfare state. From Vedic period all had access to education, where everyone was treated as equal under the “Gurukula” system of delivery of education. The rationale of equity, bridging the social opportunity gap, and development of human capital for nation’s economic growth (Solow 1957) are the most sought arguments for education as public good. As the effect of education is associated with greater levels of research and development expenditures, higher rates of innovation and higher rates of new technology adoption are the
externalities associated with it. Education has its spill over effects for the society, as a whole, apart from the benefits to the individual as a person.
Public goods characterised by non-rivalry, non excludability and externalities. The state has assumed the responsibility for creation of these in form of public education delivery system which has its own inherent cost as a public good. The primary and secondary education delivery system ensures nonexcludability and non-rivalry of resources through free and compulsory education. Also the marginal costs for the same are negligible. The role of books and technology in making education a public good is remarkable when open access and open-ware are taking it to every door-step.
The private education except for the economic exclusion resembles public good but the coverage and spread is less. The probability of market failure due to limited coverage, higher charges and under-investment by individuals (economic rationality model), in case education becomes a part of free market, may lead to negative consequences for society. This calls for state intervention to ensure education as a public good. The positive externality in long term of university education gives the rational to maintain it as a public good. This can be pursued through public funded institutions and promotion of private institution with
mechanisms of control.
The nature of education as a public good is undergoing transformation towards a ‘non pure’ public good, with changing times and evolution of market. Shaw (2010) labels education as ‘bad public good’, due to poor delivery systems, which in turn, directly or indirectly, promotes emergence of private players and market. This seems to be evident from the increasing shift of people towards private education institutions.
Streamlining the above quoted issues can mitigate the problems involved, but at the same time both the public and private investments in the education sector has to be encouraged to bridge the gaps between the need and the capacity of state to undertake the education activity.
(a non-pure public good is one whose marginal cost of supply does rise gently as output is
increased. If the market fails to provide a sufficient quantity of a public good, then there is a loss of economic (social) welfare.)
References
- Council of graduate schools(2008) Graduate Education and the Public Good,Washington DC
- Dutta et al. (1999) Education and Public Policy, Fiscal Studies vol. 20, no. 4, pp. 351–386
- Is Education a Public Good? http://www.globalpolitician.com/2418-education accessed on 1 Feb 2011
- Shaw, Jane (2010) Education-A Bad Public Good? The Independent Review;Fall 2010; 15, 2; ABI/INFORM Global
- Wyckoff, James H(1984) The Nonexcludable Publicness of Primary and Secondary Public Education, Journal of Public Economics. AmsterdamVol.24, Iss. 3; pg. 331, 21 pgs
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