This paper studies second best policies for education, saving, and labour in an OLG model in which endogenous growth … equilibria are inefficient. The inefficiency is exacerbated if selfish individuals externalize the positive effect of education … on descendents’ productivity. It is shown to be second best to subsidize education even relative to the first best if the …

This paper studies second best policies for education, saving, and labour in an OLG model in which endogenous growth … equilibria are inefficient. The inefficiency is exacerbated if selfish individuals externalize the positive effect of education … on descendents' productivity. It is shown to be second best to subsidize education even relative to the first best if the …

accumulation. When young, individuals decide on education, saving, and nonqualified labour. When old, individuals supply qualified … if selfish individuals externalize the positive effect of education on descendents' productivity. It is shown to be … second best not to distort education if the human capital investment function is isoelastic. If the function is not …

accumulation. When young, individuals decide on education, saving, and nonqualified labour. When old, individuals supply qualified … if selfish individuals externalize the positive effect of education on descendents' productivity. It is shown to be … second best not to distort education if the human capital investment function is isoelastic. If the function is not …

This paper studies second best policies for education, saving, and labour in an OLG model in which endogenous growth … equilibria are inefficient. The inefficiency is exacerbated if selfish individuals externalize the positive effect of education … on descendents' productivity. It is shown to be second best to subsidize education even relative to the first best if the …

accumulation. When young, individuals decide on education, saving, and nonqualified labour. When old, individuals supply qualified … if selfish individuals externalize the positive effect of education on descendents' productivity. It is shown to be … second best not to distort education if the human capital investment function is isoelastic. If the function is not …

This paper studies second best policies for education, saving, and labour in an OLG model in which endogenous growth … equilibria are inefficient. The inefficiency is exacerbated if selfish individuals externalize the positive effect of education … on descendents' productivity. It is shown to be second best to subsidize education even relative to the first best if the …

accumulation. When young, individuals decide on education, saving, and nonqualified labour. When old, individuals supply qualified … if selfish individuals externalize the positive effect of education on descendents' productivity. It is shown to be … second best not to distort education if the human capital investment function is isoelastic. If the function is not …

shocks. We derive the optimal public policy mix of taxation and education policy. We show that risks can be efficiently … of relying on progressive wage taxation and granting education subsidies is an optimal response to wage and capital risks …