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Investment in Education and Redistributive Taxation without Precommitment

Author

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  • Poutvaara, Panu

Abstract

This paper compares private investment in risky education in a laissezfaire economy and with income redistribution. Obtaining higher education requires time and may require paying nondeductible resource costs. The paper shows that redistributive taxation may actually increase private investment in risky education also without precommitment.
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Suggested Citation

  • Poutvaara, Panu, 2003. "Investment in Education and Redistributive Taxation without Precommitment," Munich Reprints in Economics 19299, University of Munich, Department of Economics.
    • Handle: RePEc:lmu:muenar:19299
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    Cited by:

    1. Dan Anderberg & Carlo Perroni, "undated". "Renegotiation of Social Contracts by Majority Rule," EPRU Working Paper Series 00-15, Economic Policy Research Unit (EPRU), University of Copenhagen. Department of Economics.
    2. Andersson, Fredrik & Konrad, Kai A, 2003. "Globalization and Risky Human-Capital Investment," International Tax and Public Finance, Springer;International Institute of Public Finance, vol. 10(3), pages 211-228, May.
    3. Sebastian Findeisen & Dominik Sachs, 2018. "Education Policies and Taxation without Commitment," Scandinavian Journal of Economics, Wiley Blackwell, vol. 120(4), pages 1075-1099, October.
    4. Andersson, Fredrik W. & Konrad, Kai A., 2001. "Globalization and Human Capital Formation," IZA Discussion Papers 245, IZA Network @ LISER.
    5. Panu Poutvaara, 2006. "On the political economy of social security and public education," Journal of Population Economics, Springer;European Society for Population Economics, vol. 19(2), pages 345-365, June.

    More about this item

    JEL classification:

    • H21 - Public Economics - - Taxation, Subsidies, and Revenue - - - Efficiency; Optimal Taxation
    • I22 - Health, Education, and Welfare - - Education - - - Educational Finance; Financial Aid

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