India: Education and the Government

Atanu Dey explains why liberalizing the education sector comes with many benefits ^[1]. “The supply of educational services will increase, the quality will improve, and prices will come down. These are all everyday first-order efficiency effects of letting markets work. The second-order effects will be increased productivity, increased production, and better allocative efficiency within the sector. The third-order effects will arise from the increasing returns to scale associated with the production of education.”