children invest in post-compulsory education, subject to an endogenous credit constraint, and taking policy as given. There are … two policy tools: a subsidy to those who participate in education and a proportional income tax. Not all children … support a reduction, while the “middle-class” supports an expansion, of the education subsidy. Public support of education is …

children invest in post-compulsory education, subject to an endogenous credit constraint, and taking policy as given. There are … two policy tools: a subsidy to those who participate in education and a proportional income tax. Not all children … support a reduction, while the quot;middle-classquot; supports an expansion, of the education subsidy. Public support of …

This paper considers how optimal education and tax policy depends on the risk properties of human capital. It is … positive or a negative education premium. In the same model a positive intertemporal wedge is optimal. Aset of generalizations …, including non-observability of education, non-observability of consumption, and temporal resolution of uncertainty, are then …