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Cover of: Investment in Education and Redistributive Taxation without Precommitment
Panu Poutvaara

Investment in Education and Redistributive Taxation without Precommitment

Section: Articles
Volume 59 (2003) / Issue 2, pp. 177-188 (12)
Published 09.07.2018
DOI 10.1628/0015221032643182
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  • 10.1628/0015221032643182
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Summary
This paper compares private investment in risky education in a laissezfaire economy and with income redistribution. Obtaining higher education requires time and may require paying nondeductible resource costs. The paper shows that redistributive taxation may actually increase private investment in risky education also without precommitment.