This paper considers how optimal education and tax policy depends on the risk properties of human capital. It is … demonstrated that a key feature of human capital investments is whether they increase or decrease wage risk. In a benchmark model … positive or a negative education premium. In the same model a positive intertemporal wedge is optimal. Aset of generalizations …

positively skewed. Our best guess of ex ante risk in university education is a coefficient of variation of about 0.3, comparable …The risk of investment in schooling has largely been ignored. We assess the variance in the rate of return by surveying …

preferences, standard risk aversion and labour supply behaviour, (ii) the risk properties of education, and (iii) the degree of …Justification for policies to encourage investments in education, particularly for individuals at the lower end of the … potentially loss averse around their expected outcome make risky investments in education and we draw on optimal tax theory to …

We develop a simple model of managing a system subject to pollution damage under risk of an abrupt and random jump in … each model. The framework is used to analyze the adaptation vs. mitigation dilemma and provides a simple criterion to …

the global public good ‘climate change mitigation’. This paper focuses on a specific type of international transfer that … aims at raising mitigation while also reducing the damages from climate change: conditional adaptation support. Especially … transfers reduce the recipients’ incentives to contribute to climate change mitigation, one would, however, expect at least …

to the existing literature, we explicitly model the decision of risk-averse governments on mitigation and adaptation … widely unknown. Governments try to cope with these risks by investing in mitigation and adaptation measures. Mitigation aims … policies. Furthermore we also consider the interaction of the two strategies. Mitigation efforts of a single country trigger …

This paper investigates Becker, Hornung and Woessmann’s recent claim that education had an important causal effect on … problems, notably the omission of relevant variables which leads to serious bias in the estimated effect of education. When … these problems are corrected, the conclusions of Becker, Hornung and Woessmann no longer hold. Education did not play an …

This contribution investigates the role of education in domestic terrorism for 133 countries between 1984 and 2007. The … findings point at a nontrivial effect of education on terrorism. Lower education (primary education) tends to promote terrorism … education (university education) reduces terrorism in a cluster of countries where conditions are more favorable. This suggests …