Gorostiaga, Arantza; Hromcová, Jana; García, Miguel … - Instituto Valenciano de Investigaciones Económicas (IVIE) - 2011
We show that in the Uzawa-Lucas model with externality in human capital with agents that value both consumption and leisure, the government pursuing the first best can achieve its goal by subsidizing the foregone earnings while studying. The subsidy should be financed by a schooling fee. We...