ABSTRACT
Education serves three different purposes, only one of which is to teach people skills that enhance their productivity. Education also prepares students to participate fully in social decision-making, and education is also a “consumption good” with particularly strong preference development benefits as well as preference fulfillment benefits. In Chapter 13 we incorporate these additional benefits from investment in education into our analysis and take both access to information and incentives into account in choosing who should be responsible for estimating different effects to calculate the efficient amount to invest in education.
