Universitary Financing and Welfare: A Dynamic Analysis with Heterogeneous Agents and Overlapping Generations
AbstractThis paper develops a model in which it is possible to evaluate alternatives of human capital financing. The alternative systems under discussion are: total feeing; graduates taxes and uniform taxes (this can be associated to the scheme presently used in the Argentina universitary system). Assessment of the alternatives is performed over welfare, based on the indicators of poverty, equality, equity (justice in the distribution) and the average levels of utility and wealth. Likewise, the functions of welfare presented by Bentham, Rawls, Atkinson, Sen and Kakwani are also considered. The most remarkable results are obtained through the simulation of an economy under three scenarios. In that way, the system of graduates taxation is found to be better for welfare; whereas the system of uniform taxation only can be justified as it maximises the number of students. In addition, an analysis of political economy in this model helps to understand why a system of uniform taxation can be sustainable on the time.
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Bibliographic InfoPaper provided by EconWPA in its series Macroeconomics with number 0402001.
Length: 48 pages
Date of creation: 01 Feb 2004
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Human Capital; Welfare; Overlapping Generation;
Other versions of this item:
- Juan M. Sánchez, 2003. "Universitary Financing and Welfare: A Dynamic Analysis with Heterogeneous Agents and Overlapping Generations," Department of Economics, Working Papers 047, Departamento de Economía, Facultad de Ciencias Económicas, Universidad Nacional de La Plata.
- H1 - Public Economics - - Structure and Scope of Government
- I2 - Health, Education, and Welfare - - Education
- E62 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - Fiscal Policy
- O15 - Economic Development, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration
This paper has been announced in the following NEP Reports:
- NEP-ALL-2004-02-08 (All new papers)
- NEP-DGE-2004-02-08 (Dynamic General Equilibrium)
- NEP-EDU-2004-02-08 (Education)
- NEP-PBE-2004-02-08 (Public Economics)
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