Abstract
We propose a dynamic general equilibrium model with human capital accumulation to evaluate the economic consequences of compulsory services (such as military draft or social services). Our analysis identifies a so far ignored dynamic cost arising from distortions in time allocation over the life-cycle. We provide conservative estimates for the excess burden that arises when the government relies on forced labor rather than on income taxation to finance public expenditures. Our results suggest that eliminating the draft could produce considerable dynamic gains, both in terms of GDP and lifetime utility.
| Dokumententyp: | Paper |
|---|---|
| Fakultät: | Volkswirtschaft
Volkswirtschaft > Lehrstühle > CESifo-Professur für Vergleichende Institutionenökonomik |
| Themengebiete: | 300 Sozialwissenschaften > 330 Wirtschaft |
| Sprache: | Englisch |
| Dokumenten ID: | 19362 |
| Datum der Veröffentlichung auf Open Access LMU: | 15. Apr. 2014 08:50 |
| Letzte Änderungen: | 29. Apr. 2016 09:16 |
- Dokument bearbeiten
