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 …

country level are related to macroeconomic conditions, specifically government education expenditures and early education … experience. We find that both government expenditures in education and attendance to early child care are associated with better …

evaluates the positive and normative implications of R&D subsidies and compares them with the effects of public education policy … engineering (S&E) skills, where individuals endogenously choose the type of education, and allows for heterogeneity in individual … publicly provided education targeted to S&E skills. Finally, the optimal structure of public education spending on different …

We develop a model of education where individuals face educational risk. Successfully entering the skilled labor sector … depends on individual effort in education and public resources, but educational risk still causes (income) inequality. We show …, because combining skill-specific tuition fees and public education spending provide both insurance and redistribution at lower …

income tax systemhigher education should be taxed rather than subsidized.Furthermore, income taxes should become less … progressive whenan optimal higher education policy is introduced. …

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 …