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Should Educational Policies Be Regressive?

Author

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  • Humberto Moreira
  • Daniel Gottlieb

Abstract

In 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

Suggested Citation

  • Humberto Moreira & Daniel Gottlieb, 2004. "Should Educational Policies Be Regressive?," Econometric Society 2004 North American Summer Meetings 258, Econometric Society.
  • Handle: RePEc:ecm:nasm04:258
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    Cited by:

    1. Azevedo, Eduardo M. & Salgado, Pablo, 2012. "Universidade pública deve ser grátis para quem pode pagar?," Revista Brasileira de Economia - RBE, FGV/EPGE - Escola Brasileira de Economia e Finanças, Getulio Vargas Foundation (Brazil), vol. 66(1), March.

    More about this item

    Keywords

    Education; Pigouvian taxes; Student loans; redistribution.;

    JEL classification:

    • 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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