This paper considers how optimal education and tax policy depends on the risk properties of human capital. It is … positive or a negative education premium. In the same model a positive intertemporal wedge is optimal. A set of generalizations …, including non-observability of education, non-observability of consumption, and temporal resolution of uncertainty, are then …

We propose an innovation-driven growth model in which education is determined by family background and cognitive … ability. We show that compulsory schooling can move a society from elite education to mass education, which then triggers …, compulsory education is implemented first and triggers the onset of market R&D. According to the British way, market R&D is …

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 … preferences, standard risk aversion and labour supply behaviour, (ii) the risk properties of education, and (iii) the degree of …

This paper considers education investment and public education policy in closed and open economies with an extortionary … government. The extortionary government in a closed economy chooses an education policy in order to overcome a hold-up problem of … time-consistent taxation similar to benevolent governments. The two types of government differ in their education policies …

education with and without capital markets integration. First, we explore how regimes of education provision - public, private …-run effects of capital markets integration, in equilibrium, on the optimal provision of education and growth. Third, we examine a … competition game where countries compete in the provision of public education. …