Resource title

Taxing education in Ramsey's tradition

Resource image

image for OpenScout resource :: Taxing education in Ramsey's tradition

Resource description

Assuming a two-period model with endogenous choices of labour, education, and saving, it is shown to be second-best efficient to deviate from Ramsey's Rule and to distort qualified labour less than nonqualified labour. The result holds for arbitrary utility and learning functions. Efficient incentives for education and saving are analysed under conditions of second and third best. It is argued that efficient tax policy should care more about incentives for education than for saving.

Resource author

Wolfram F. Richter

Resource publisher

Resource publish date

Resource language

eng

Resource content type

text/html

Resource resource URL

http://hdl.handle.net/10419/26631

Resource license

Adapt according to the presented license agreement and reference the original author.