Proxy structural vector autoregressions (SVARs)identify structural shocks in vector autoregressions (VARs) with external proxy variables that are correlated with the structural shocks of interest but uncorrelated with other structural shocks. We provide asymptotic theory for proxy SVARs when the...

This paper studies the effect of income tax progressivity on the disproportionate usage of publicly funded higher education. We develop a rational choice model showing that more progressive tax systems increase poorer households' net fiscal benefit, making their children more likely to attend...