Should Educational Policies Be Regressive?
AbstractIn this paper, we show that when the government is able to transfer wealth between generations, regressive policies are no longer optimal. The optimal educational policy can be decentralized through appropriate Pigouvian taxes and credit provision, is not regressive, and provides equality of opportunities in education (in the sense of irrelevance of parental income for the amount of education). Moreover, in the presence of default, the optimal policy can be implemented through income-contingent payments
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Bibliographic InfoPaper provided by Econometric Society in its series Econometric Society 2004 North American Summer Meetings with number 258.
Date of creation: 11 Aug 2004
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Education; Pigouvian taxes; Student loans; redistribution.;
Other versions of this item:
- Gottlieb, Daniel & Moreira, Humberto Ataíde, 2003. "Should educational policies be regressive?," Economics Working Papers (Ensaios Economicos da EPGE) 508, FGV/EPGE Escola Brasileira de Economia e Finanças, Getulio Vargas Foundation (Brazil).
- I28 - Health, Education, and Welfare - - Education - - - Government Policy
- H23 - Public Economics - - Taxation, Subsidies, and Revenue - - - Externalities; Redistributive Effects; Environmental Taxes and Subsidies
- I22 - Health, Education, and Welfare - - Education - - - Educational Finance; Financial Aid
- H52 - Public Economics - - National Government Expenditures and Related Policies - - - Government Expenditures and Education
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