G2TT
来源类型Discussion paper
规范类型论文
来源IDDP10806
DP10806 On the Optimal Provision of Social Insurance: Progressive Taxation versus Education Subsidies in General Equilibrium
Dirk Krueger; Alexander Ludwig
发表日期2015-09-06
出版年2015
语种英语
摘要In this paper we compute the optimal tax and education policy transition in an economy where progressive taxes provide social insurance against idiosyncratic wage risk, but distort the education decision of households. Optimally chosen tertiary education subsidies mitigate these distortions. We highlight the quantitative importance of general equilibrium feedback effects from policies to relative wages of skilled and unskilled workers: subsidizing higher education increases the share of workers with a college degree thereby reducing the college wage premium which has important redistributive benefits. We also argue that a full characterization of the transition path is crucial for policy evaluation. We find that optimal education policies are always characterized by generous tuition subsidies, but the optimal degree of income tax progressivity depends crucially on whether transitional costs of policies are explicitly taken into account and how strongly the college premium responds to policy changes in general equilibrium.
主题International Macroeconomics and Finance ; Macroeconomics and Growth ; Public Economics
关键词Education subsidy Progressive taxation Transitional dynamics
URLhttps://cepr.org/publications/dp10806
来源智库Centre for Economic Policy Research (United Kingdom)
资源类型智库出版物
条目标识符http://119.78.100.153/handle/2XGU8XDN/539636
推荐引用方式
GB/T 7714
Dirk Krueger,Alexander Ludwig. DP10806 On the Optimal Provision of Social Insurance: Progressive Taxation versus Education Subsidies in General Equilibrium. 2015.
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