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to (a) estimate the value of the externality and (b) discover the amount of subsidy needed to trigger the private … which selects projects based on the estimated amount of JLEs per dollar of subsidy. The bidding process provides an … incentive to investors to reveal the subsidy needed for a project to become privately viable. We show that the proposed approach …
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The present paper studies a multi-jurisdictional framework, in which, from a federal perspective, educational subsidies turn out to be efficiency enhancing. However, in the presence of mobile high-skilled labor, local jurisdictions might try to free-ride on other regions' education policies and...
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Assuming a two-period model with endogenous choices of labour, education, and saving, efficient education policy is characterized for a Ramsey-like scenario in which the government is constrained to use linear instruments. It is shown that education should be effectively subsidized if, and only...
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We investigate if, and under which conditions, the distinction between dictatorial and incentive-based policy interventions affects the capacity of Instrument Variable (IV) methods to estimate the relevant treatment effect parameter of an outcome equation. The analysis is set in a non-trivial...
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