potentially loss averse around their expected outcome make risky investments in education and we draw on optimal tax theory to …Justification for policies to encourage investments in education, particularly for individuals at the lower end of the … preferences, standard risk aversion and labour supply behaviour, (ii) the risk properties of education, and (iii) the degree of …

This paper analyzes simultaneous voting on the wage tax rate and investment in public education with three overlapping … generations and productivity differences inside each cohort. Wage tax revenue finances public education and social security …, then higher tax rates are associated with more education. Surprisingly, the median voter may be a young citizen even when …