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Efficient Subsidization of Human Capital Accumulation with Overlapping Generations and Endogenous Growth

Richter, Wolfram F. - 2010

This paper studies second best policies for education, saving, and labour in an OLG model in which endogenous growth results from human capital accumulation. Government expenditures have to be financed by linear instruments so that growth equilibria are inefficient. The inefficiency is...

Persistent link: https://www.econbiz.de/10013146790

Majority Vote on Educational Standards

Schwager, Robert - 2018

The direct democratic choice of an examination standard, i.e., a performance level required to graduate, is evaluated against a utilitarian welfare function. It is shown that the median preferred standard is inefficiently low if the marginal cost of reaching a higher performance reacts more...

Persistent link: https://www.econbiz.de/10012925249

Voting on Labour-Market Integration and Education Policy When Citizens Differ in Mobility and Ability

Haupt, Alexander - 2009

We analyse how institutional and political decisions are intertwined. Citizens who differ in their mobility and ability vote first on labour market integration and afterwards on education policy. The institutional decision on integration influences the succeeding education policy. More...

Persistent link: https://www.econbiz.de/10012764389

Social Security Systems, Human Capital, and Growth in a Small Open Economy

Kaganovič, Michail I. - 2008

We consider a small open economy in which the level of public education funding is determined by popular vote. We show that growth can be enhanced by the introduction of pay-as-you-go pensions even if the growth rate of aggregate wages falls short of the interest rate. The reason is that the...

Persistent link: https://www.econbiz.de/10012768260

The Political Economy of Post-Compulsory Education Policy with Endogenous Credit Constraints

Anderberg, Dan - 2008

Altruistic parents, who differ in income, make financial transfers to their children, who differ in ability. The children invest in post-compulsory education, subject to an endogenous credit constraint, and taking policy as given. There are two policy tools: a subsidy to those who participate in...

Persistent link: https://www.econbiz.de/10012771859

Education : Optimal Choice and Efficient Policy

Richter, Wolfram F. - 2015

The research on earnings determination is based on the Mincer-Becker assumption that individuals decide on schooling by maximizing income. This paper offers an alternative and less restrictive approach based on utility maximization. Using this approach, we analyze the efficiency of education...

Persistent link: https://www.econbiz.de/10013020568

Taxing Human Capital Efficiently When Qualified Labour is Mobile

Richter, Wolfram F.; Kunze, Lars - 2021

The paper studies the effect that skilled labour mobility has on efficient education policy. The model is one of two periods in which a representative taxpayer decides on labour, education, and saving. The government can only use linear tax and subsidy instruments. It is shown that the mobility...

Persistent link: https://www.econbiz.de/10013316063

A Note on Brain Gain and Brain Drain : Permanent Migration and Education Policy

Haupt, Alexander; Krieger, Tim; Lange, Thomas - 2021

In this note, we present a novel channel for a brain gain. Students from a developing country study in a developed host … country. A higher permanent migration probability of these students appears to be a brain drain for the developing country in … benefits accrue in this host country. A higher education quality raises in turn the human capital of the returning students. As …

Persistent link: https://www.econbiz.de/10013316173

Efficient Education Policy - A Second-Order Elasticity Rule

Richter, Wolfram F. - 2021

Assuming a two-period model with endogenous choices of labour, education, and saving, efficient education policy is characterized for a Ramsey-like scenario in which the government is constrained to use linear instruments. It is shown that education should be effectively subsidized if, and only...

Persistent link: https://www.econbiz.de/10013316238

Education and Social Mobility

Cremer, Helmuth; De Donder, Philippe; Pestieau, Pierre - 2021

This paper shows that the design of education policy involves a potential conflict between welfare and social mobility. We consider a setting in which social mobility is maximized under the least elitist public education system, whereas welfare maximization calls for the most elitist system. We...

Persistent link: https://www.econbiz.de/10013316250