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Optimal Educational Investment: Domestic Equity and International Competition

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Author Info
Geraint Johnes

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Abstract

We construct a family of models to analyse the effect on optimal educational investment of (i) society's preferences for equity and (ii) competition between countries. The models provide insights about the impact of a variety of parameters on optimal policy. In particular, we identify a form of 'overeducation' that is new to the literature, and provide a counterexample to a common finding in the literature on fiscal federalism.

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File URL: http://www.lums.lancs.ac.uk/publications/viewpdf/005891/
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Publisher Info
Paper provided by Lancaster University Management School, Economics Department in its series Working Papers with number 005891.

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Date of creation: 2009
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Handle: RePEc:lan:wpaper:005891

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Related research
Keywords: education; taxation; income distribution; competition;

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  1. Daly, Mary C. & Buchel, Felix & Duncan, Greg J., 2000. "Premiums and penalties for surplus and deficit education: Evidence from the United States and Germany," Economics of Education Review, Elsevier, vol. 19(2), pages 169-178, April. [Downloadable!] (restricted)
  2. Dolton, Peter & Vignoles, Anna, 2000. "The incidence and effects of overeducation in the U.K. graduate labour market," Economics of Education Review, Elsevier, vol. 19(2), pages 179-198, April. [Downloadable!] (restricted)
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This page was last updated on 2009-11-23.

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