This paper studies the role of intangible capital investment in the timing of optimal capital income tax reforms. Within an infinitely lived worker–capitalist model as in Judd (J Public Econ 28:59–83, 1985), we consider two different economies: one in which capitalists devote physical...

Free college proposals have become increasingly popular in many countries. To evaluate their potential effects, this paper develops and estimates a dynamic model of college enrollment, performance, and graduation. A central piece of the model, student effort has a direct effect on class...