We investigate the optimal nonlinear wage and interest-income taxes with money as an asset, assuming that there are two types of labor, which are not perfect substitutes in production, and that each type is difficult for the policymaker to observe. It is shown that the optimal interest-income...

This paper examines the effects of government educational subsidies on economic growth and welfare. In an overlapping-generations model with human-capital accumulation, it is shown that, even when human-capital externalities are large, an increase in government subsidies to private-education...

Our purpose is to examine the effect of monetary expansion on capital accumulation and economic growth in an overlapping generations model with the growth engine of human capital accumulation. It is shown that, under the money-in-the-utility-function approach, money growth stimulates human...