Do increases in public expenditures always promote economic growth? Optimal health and education expenditures in OECD countries
JOURNAL OF POLICY MODELING, vol.0, no.0, 2026 (SSCI, Scopus)
- Publication Type: Article / Article
- Volume: 0 Issue: 0
- Publication Date: 2026
- Doi Number: 10.1016/j.jpolmod.2026.107118
- Journal Name: JOURNAL OF POLICY MODELING
- Journal Indexes: Academic Search Ultimate (EBSCO), Business Source Ultimate (EBSCO), Scopus, Social Sciences Citation Index (SSCI), IBZ Online, Periodicals Index Online, ABI/INFORM, EconLit, Political Science Complete, Public Affairs Index, Political Science Abstract (IPSA)
- Bursa Uludag University Affiliated: Yes
Abstract
This study examines the nonlinear relationship between public health and education expenditures and economic growth in 33 OECD countries for the 2010–2022 period using the System GMM method. The findings reveal an inverted U-shaped relationship between public health expenditure and economic growth, and a U-shaped relationship between public education expenditure and economic growth. The optimal level of public health expenditure is estimated at 8.638 % of GDP, while the threshold for public education expenditure is 6.358 %. These findings provide empirical evidence for public expenditure policies that allocate health and education budgets more efficiently while promoting sustainable economic growth.