| Poutvaara, Panu; Kanniainen, Vesa (2000): Why invest in your neighbor? Social contract on educational investment. In: International Tax and Public Finance, Vol. 7, No. 4-5: pp. 547-562 |
Full text not available from 'Open Access LMU'.
Abstract
It may be in the interest of low-ability individuals to subsidize theeducation of high-ability individuals. The sufficient conditions aresurprisingly mild: positive externalities in education andcomplementarity in production between human capital and labor suppliedby the low-ability individuals. However, tax competition and the freemobility of the educated give rise to time-inconsistency and free-ridingproblems which render such a social contract infeasible and result in asuboptimally low investment in education.
| Item Type: | Journal article |
|---|---|
| Faculties: | Economics Economics > Chairs > CESifo-Professorship for International Institutional Comparisons |
| Subjects: | 300 Social sciences > 330 Economics |
| Language: | English |
| ID Code: | 19797 |
| Deposited On: | 15. Apr 2014 08:53 |
| Last Modified: | 04. Nov 2020 13:01 |
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