| Poutvaara, Panu; Kanniainen, Vesa (1999): Why to Invest in your Neighbor? Social Contract on Educational Investment. CESifo Working Paper, 202 |
Full text not available from 'Open Access LMU'.
External fulltext: http://hdl.handle.net/10419/75578
Abstract
It may be in the interest of low-ability individuals to subsidize the education of high-ability individuals. Sufficient conditions are surprisingly mild: positive externalities in education and complementarity in production between human capital and labor supllied by the low-ability individuals. However, tax competition and the free mobility of the educated give rise to time-inconsistency and free-riding problems which render such a social contract infeasible and result in a subotimally low investment in education.
| Item Type: | Paper (Discussion Paper) |
|---|---|
| Faculties: | Economics Economics > Chairs > CESifo-Professorship for International Institutional Comparisons |
| Subjects: | 300 Social sciences > 330 Economics |
| Language: | English |
| ID Code: | 19798 |
| Deposited On: | 15. Apr 2014 08:53 |
| Last Modified: | 29. Apr 2016 09:17 |
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