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Multivariate Tobit System Estimation Of Education Expenditure In Urban China

Author

Listed:
  • QUHENG DENG

    (Institute of Economics, Chinese Academy of Social Sciences, 2 Yuetan Beixiaojie, Beijing 100836, China)

  • JINJUN XUE

    (Graduate School of Economics, Nagoya University, Furo-cho, Chikusa-ku, Nagoya 464-8601, Japan)

Abstract

Using the 2007 education survey data in urban China, this paper measures the inequality of education expenditures, an indicator of education inequality, and analyzes the effect of household income on the components of education expenditures. Since the components of education expenditure are censored and inter-related, this paper runs a multivariate Tobit system regression of five categories of education expenditures. Our results imply that household income per capita positively affects expenditure on boarding, private tutoring and costs for selecting schools but does not affect expenditure on textbooks. In return, the inequality of education expenditures contribute to income inequality in urban China.

Suggested Citation

  • Quheng Deng & Jinjun Xue, 2014. "Multivariate Tobit System Estimation Of Education Expenditure In Urban China," The Singapore Economic Review (SER), World Scientific Publishing Co. Pte. Ltd., vol. 59(01), pages 1-14.
    • Handle: RePEc:wsi:serxxx:v:59:y:2014:i:01:n:s0217590814500052
    DOI: 10.1142/S0217590814500052
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    References listed on IDEAS

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    1. Train,Kenneth E., 2009. "Discrete Choice Methods with Simulation," Cambridge Books, Cambridge University Press, number 9780521766555, September.
    2. Maddala,G. S., 1986. "Limited-Dependent and Qualitative Variables in Econometrics," Cambridge Books, Cambridge University Press, number 9780521338257, January.
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    Cited by:

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    2. Song, Yang & Zhou, Guangsu, 2019. "Inequality of opportunity and household education expenditures: Evidence from panel data in China," China Economic Review, Elsevier, vol. 55(C), pages 85-98.

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    More about this item

    Keywords

    Education expenditure; urban China; multivariate tobit; JEL Classifications: C30; JEL Classifications: I24; JEL Classifications: I28; JEL Classifications: J31; JEL Classifications: O15; JEL Classifications: R23;
    All these keywords.

    JEL classification:

    • C30 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - General
    • I24 - Health, Education, and Welfare - - Education - - - Education and Inequality
    • I28 - Health, Education, and Welfare - - Education - - - Government Policy
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
    • O15 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration
    • R23 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - Regional Migration; Regional Labor Markets; Population

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