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Education Supply and Growth: the Role of Progressive Taxation

  • Barthelemy, V.
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    This paper studies the theoretical effects of public policies on growth by stressing the major incidence of both the tax structure and the public education supply. Given an education supply, an increase in the progressivity of income taxation shortens the educational effort since the benefits to education are reduced relatively to its cost. But an increase in the proportion of teachers shortens the educational effort if the adults bear an higher tax rate than the young. For sufficiently high degrees of tax progressivity, an overdevelopment of the education supply is thus harmful for long-run growth. This means there exists a proportion of teachers that maximizes growth.

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    Paper provided by Universite Aix-Marseille III in its series G.R.E.Q.A.M. with number 00a17.

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    Length: 21 pages
    Date of creation: 2000
    Date of revision:
    Handle: RePEc:fth:aixmeq:00a17
    Contact details of provider: 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
    Fax: 04.91.90.02.27
    Web page: http://www.greqam.fr/Email:


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