THE ROLE OF THE EDUCATION INDUSTRY IN THE U.S. EXTENDED INCOME CIRCULAR FLOW
The aim of this work is to design policies for public and private education systems in the U.S. Such policies are determined by assessing the importance of public and private education as industries. The role of public and private education industries is evaluated both in terms of their capability of being stimulated by, and of stimulating the other industries, the primary factors, and the institutional sectors. The analytic framework suitable to address this problem is a multisectoral model based on the Social Accounting Matrix (SAM) approach. Policy design is based on both traditional multiplier and Macro Multiplier approaches. Policy simulation consists in the evaluation of the short term multiplier effects of education oriented policies expressed by shocks on final demand. Observed results show compatibility between targets of generalized output growth in almost all the sector of the economy and of output growth in both public and private education industries.