School Funding, Taxes, and Economic Growth: An Analysis of the 50 States

This study evaluates the employment effects of a fiscal policy decision relating to education-related taxing and spending. Specifically, the study looks at the consequences of an increase in education spending by 2 percent and an equal increase in state residents' consumer taxes. The analysis considers the development impacts of education as an economic "industry," employing resources and producing an output. It also considers effects that are unique to educational spending.