if highly productive labor is mobile. Extortionary governments incentives for a policy that stimulates higher private … education efforts vanish; instead they have incentives to prevent individuals from mobility-increasing education investment. Tax …

extortionary government. The extortionary government in a closed economy has incentives to subsidize education in order to overcome … their education policies if highly productive labor is fully mobile. Extortionary governments' incentives for education … competition therefore reduces hold-up problems of time consistent extortionary taxation, but also introduces incentives that …

if highly productive labor is mobile. Extortionary governments' incentives for a policy that stimulates higher private … education efforts vanish; instead they have incentives to prevent individuals from mobility-increasing education investment. Tax …