Study On The Mechanism And Influencing Factors Of Educational Investment

In the face of the increasingly fierce competition for human capital around the world and the increasingly urgent demand for talent cultivation in China,it is imperative to upgrade and develop the education industry.However,there are still some problems in China's educational investment policy,such as insufficiency within regions,imbalance between regions and mismatch between supply and demand.Therefore,optimizing the structure of educational investment and improving the efficiency of educational investment are important for the high-quality development of education and the steady transformation of China's economy.Under the circumstances,it is of great theoretical significance and practical value to study the educational investment mechanism and its influencing factors.In terms of theoretical significance,the paper will further enrich the research framework of educational investment mechanism,and perfect the logic chain between educational investment's influencing factors.As the government giving priority to education development,and as residents regarding education as the optimal way to improve social mobility,the influencing factors of public and private educational investment is more complex,and there may be interaction between them.However,the classical theory has not formed an effective logical framework to sort out the education investment mechanism clearly.In terms of practical value,by applying the research results of educational investment mechanism and influencing factors,we can rationally analyze of the formation reasons and the transmission mechanism of the public and private educational investment structure.Besides,the results of the research also enlighten the implement of a more positive and effective macroeconomic regulation policy,which can ensure the equity of education development,help accumulate human capital rapidly,and benefits for the steady transformation of economic development into high-quality stage.Educational investment can be mainly divided into social input and individual input.The former mainly stems from public educational investment by the government,while the latter stems from private educational investment by the residents.The paper focuses on the public educational investment and private educational investment to discuss the framework of education investment system.In addition to gathering the classical theory and related literature of educational investment,the paper also analyzes the characteristic of public educational investment and private educational investment in China.By constructing game model,overlapping generations model,mediating effect model and spatial econometric model,the paper discusses the mechanism and influence factors of educational investment.Firstly,based on the game model,the paper explores the strategy of government and residents in educational investment.Existing studies have paid more attention to the quantitative aspect of educational investment,and regard adding educational investment values to the model as a way to discuss educational investment,but they have ignored the behavioral motives of government and residents,which makes it difficult for us to explain the main cause of educational investment changes,and to predict the impact of changes in educational investment.Therefore,it is necessary to understand educational investment strategies of the government and residents.Only by assuming that the government and the residents are rational,can we better understand the logic of their behaviors.This paper establishes an incomplete information dynamic game model between government and residents,and clarifies their optimal strategy mechanism by solving the sufficient and necessary conditions of perfect Bayesian equilibrium.The results show that the fiscal education policy is related to the education demand of residents,and residents' educational strategy is mainly affected by what they can gain from the expansion of public educational investment and other residents' education demand.In addition,considering the heterogeneity of residents' consumption preferences and the existence of the "voting with feet" mechanism,the strategic choice under the equilibrium of the game will lead to the concentration of educational resources and human capital,and then enlarge the gap of public and private educational investment between regions.Therefore,to promote the realization of education equity,it is necessary to optimize residents' awareness on education and implement differentiated regional regulation policies.Besides,it is necessary to pay attention to the existence of residents' consumption preference heterogeneity and the differences in the composition of heterogeneous residents within regions.Secondly,by introducing the human capital function into the overlapping generational model,the paper constructs a theoretical model to describe the correlation between public and private educational investment,and verifies the existence of the game between government and residents on educational investment.Considering that the heterogeneity of residents' consumption preferences is an indispensable part in the study of educational investment mechanism,this paper uses the panel quantile model to empirically test the correlation between public educational investment and private educational investment,and describes the differential feedback mechanism of private educational investment between groups with different consumption preferences.The results show that there is a crowding-in effect between public educational investment and private educational investment,which is not constrained by the heterogeneity of residents' consumption preference.In addition,the crowding-in effect is significant for different levels of education and residents in different regions.The existence of crowding-in effect provides strong evidence for the effectiveness of the active educational fiscal policy.Based on the mediating effect model,this paper explores the influencing factors of private educational investment.Different from previous studies,the paper discusses the influencing factors of private educational investment under household micro-decision-making mechanism.First,starting from the micro-decision-making mechanism helps to make the influencing factors compatible with each other in the causal logic of micro-decision-making process.Secondly,taking households as the decision-making unit of private educational investment conforms to the social reality of China.Therefore,our research discusses the influencing factors of private educational investment within households,and focuses on the causal relationship between economic capital,cultural capital,and private educational investment.The results show that,from the perspective of micro-decision-making mechanism,the difference in private educational investment mainly stems from the gap in economic capital and cultural capital.Among them,economic capital plays a mediation effect between cultural capital and private educational investment,and the influence of cultural capital private educational investment is non-linear.In addition,based on the stochastic dominance theory,the paper clarifies the formation mechanism of the intergenerational educational investment gap and income gap,and provides policy suggestions for improving social mobility and promoting educational equity and social equity.Finally,this paper explores the influencing factors of public educational investment based on spatial spillover effect.In the research,we not only paid attention to the influence of basic local characteristics such as economic characteristics,fiscal characteristics and human capital characteristics,but also paid attention to the relationship between the public educational investment of local governments.In fact,under the assumption that the local government is rational,there may be an interactive relationship between their fiscal policies.Ignoring this may result in targeting errors in education fiscal policies.Based on the spatial econometric model,results show that public educational investment of local governments is affected by local economic characteristics,financial characteristics,and human capital characteristics,and there is a complementary strategic interaction relationship between governments' fiscal educational policies.In addition,the existing researches on the interaction of fiscal policy are mostly based on the theoretical framework of yardstick competition.However,it is doubtful whether this theory can be well adapted to China's administrative system.Therefore,based on the tax competition theory and the yardstick competition theory,the paper tests the motive of the interaction between local governments on education.The results show that the relationship is mainly inspired by the economic motivation under the tax competition theory and the policy inertia motivation under the progressive budget theory,which benefits for the plan of public educational investment and for the improvement of the fiscal policy system.