Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/26496
Authors: 
Anderberg, Dan
Year of Publication: 
2008
Series/Report no.: 
CESifo working paper 2451
Abstract: 
This paper considers how optimal education and tax policy depends on the risk properties of human capital. It is demonstrated that a key feature of human capital investments is whether they increase or decrease wage risk. In a benchmark model it is shown that this feature alone determines whether a constrained optimal allocation should be characterized by a positive or a negative education premium. In the same model a positive intertemporal wedge is optimal. A set of generalizations, including non-observability of education, non-observability of consumption, and temporal resolution of uncertainty, are then considered to examine the robustness of these results.
Subjects: 
Education
optimal taxation
risk
JEL: 
D81
H21
I21
Document Type: 
Working Paper

Files in This Item:
File
Size
374.49 kB





Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.