1) Rate of return in education tend to decline in keeping with the theory of diminishing returns. If this is so, why is it that labor productivity keeps increasing over time?

2) What is the justification for subsidizing higher education?

3) Consider the production function for education. Has it changed substantially over time? How does it compare with the production function for banking services?

4) Because the rates of return to education fall as level of education increases, one would expect poorer countries to spend the most on primary education? However, this is not the case. Why?

5) Gender discrimination in education is much higher in South Asia than it is in East and Southeast Asia. How does this relate to the standard of living and economic growth?

6) Explain why there are still large subsidies for higher education in many countries despite diminishing returns to spending on education and evidence that the gains from higher education accrue more to the person and not to society as the case for primary and secondary education.

7) The bias in spending toward curative procedures and away preventative and public health is widespread throughout the developing world. How can this bias be addressed through public policy?

8) Why is it important to distinguish the income distribution aspects of public-health policy from the health aspects of such policies? Give an example.

9) Why women's education such as an important ingredient in economic growth in developing countries in Asia? Be sure to explore all the possible synergies that contribute to the role of education for females in stimulating growth over time. Use specific country examples to illustrate your point.

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Here are my responses to the questions 1 While returns to individual levels of education may diminish productivity at the aggregate level can continue increasing over time due to factors like technolo... View the full answer