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Should Education be Taxed when Agents are Altruistic?

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  • 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.

Suggested Citation

  • Barthelemy, V., 1999. "Should Education be Taxed when Agents are Altruistic?," G.R.E.Q.A.M. 99a09, Universite Aix-Marseille III.
  • Handle: RePEc:fth:aixmeq:99a09
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    More about this item

    Keywords

    EDUCATION ; EXTERNALITIES ; EDUCATIONAL POLICY;

    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, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity

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