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Should Education be Taxed when Agents are Altruistic?

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Author Info
Barthelemy, V.
Abstract

We consider an overlapping generations model to study the effect of the educational system on growth and on the optimal educational policies when individuals are altruistic. The teaching efficiency depends on the teacher to pupil ratio; given a number of teachers, the number of students has a negative effect on the accumulation of human capital. This negative, intragenerational externality consists in a congestion effect of the educational system which may lead to overeducation. The model also assumes the existence of an intergenerational, positive externality which depends both on average human capital and on familial human capital.

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Publisher Info
Paper provided by Universite Aix-Marseille III in its series G.R.E.Q.A.M. with number 99a09.

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Length: 23 pages
Date of creation: 1999
Date of revision:
Handle: RePEc:fth:aixmeq:99a09

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Postal: G.R.E.Q.A.M., (GROUPE DE RECHERCHE EN ECONOMIE QUANTITATIVE D'AIX MARSEILLE), CENTRE DE VIEILLE CHARITE, 2 RUE DE LA CHARITE, 13002 MARSEILLE.
Phone: 04.91.14.07.70
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Web page: http://www.vcharite.univ-mrs.fr/GREQAM/
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Related research
Keywords: EDUCATION ; EXTERNALITIES ; EDUCATIONAL POLICY;

Find related papers by JEL classification:
E62 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - Fiscal Policy
H21 - Public Economics - - Taxation, Subsidies, and Revenue - - - Efficiency; Optimal Taxation
I28 - Health, Education, and Welfare - - Education - - - Government Policy
J22 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Time Allocation and Labor Supply
O4 - Economic Development, Technological Change, and Growth - - Economic Growth and Aggregate Productivity

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