"At the end of the lecture, the exhausted Prof Collier carrying a heavy bag was mobbed by autograph-seeking youths who had some questions for him. As the English professor was leaving the hall, a rogue whom he mistook for one of the Ooni’s people asked to assist him with carrying the bag. He handed it to him trustingly and like magic, the thief vanished into the thin air in a twinkle of an eye, with everything gone—money, passport, air ticket and most painful of all, a laptop filled with the professor’s writings. “My soul is missing,” a distraught Prof. Collier told me, a day after."
18 April 2017
03 April 2017
According to this model, the returns to education take so long that leaders need at least a 30 year horizon to start investing in schools.
"In the context of developing economies, investing in schools (relative to roads) is characterized by much larger long-run returns, but also by a much more pronounced intertemporal substitution of labor and crowding-out of private investment. Therefore, the public investment composition has profound repercussions on government debt sustainability, and is characterized by a trade-o, with important welfare implications. A myopic government would not invest in social infrastructure at all. The model predicts an horizon of at least thirty years for political leaders to start investing in schools and twice-as-long an horizon for the size of expenditures to be comparable to the socially-optimal level."