This paper considers the impact of endogenous human capital accumulation on optimal tax policy in a life cycle model. Including endogenous human capital accumulation, either through learning-by-doing or learning-or-doing, is analytically shown to create a motive for the government to use...

This paper considers the impact of how human capital is accumulated on optimal capital tax policy in a life cycle model. In particular, it compares the optimal capital tax when human capital is accumulated exogenously, endogenously through learning-by-doing, and endogenously through...

This paper considers the impact of endogenous human capital accumulation on optimal tax policy in a life cycle model. Including endogenous human capital accumulation, either through learning-by-doing or learning-or-doing, is analytically shown to create a motive for the government to use...

This paper shows that in a life-cycle framework, the optimal tax on capital crucially depends on how human capital is accumulated. We focus on three cases common to the macroeconomic literature: (i) Learning-By-Doing (LBD), (ii) Learning-Or-Doing (LOD), and (iii) exogenous accumulation. First,...