|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|
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.
Economics > Chairs > CESifo-Professorship for International Institutional Comparisons
|Subjects:||300 Social sciences > 330 Economics|
|Deposited On:||15. Apr 2014 08:53|
|Last Modified:||29. Apr 2016 09:17|