This study suggests that a subsidy in the form of public provision has the potential to be the most efficient educational policy because it stimulates investment in human capital, which would otherwise be inefficiently low because of distortionary income taxation and possible external benefits....

This paper examines the linkage between the incentives to work and to invest in human capital through education. These incentives are shown to be mutually reinforcing in a simple stylized model. This theoretical prediction is investigated empirically using three large micro datasets covering a...

Aggregate and average human capital per worker in each of the 50 United States are estimated using microdata from the Annual Demographic File (ADF) and outgoing Rotation Groups (ORG) of the Current Population Survey for 1976-2000 and 1979-2000, respectively, and are compared to one another and...

A study that measures the effects of human capital investment on the deficit financing costs of government spending finds that the lower current and higher future tax rates of deficit financing increases opportunity costs and reduces the benefits of investments.

This study estimates marginal rates of return to investment in schooling in 12 countries. Significant systematic nonlinearity in the marginal rate of return is found. In particular, the marginal rate of return is increasing significantly at low levels of education, and decreasing significantly...

This study quantifies one important part of the economic return to public investment in college education, namely, the fiscal benefits associated with greater college attainment. College graduates generally pay much more in taxes than those not going to college. Government expenditures are also...