Optimal Taxation and Education Subsidies

This project was part of the DFG project "Trends in Inequality: Sources and Policy (TRISP)"

Topic & Objectives

Characterization of optimal mix between early (primary school) and late (secondary school) education subsidies, subsidies to higher education and progressive income taxation in a quantitative macro public finance model with endogenous education choices and human capital investment decisions by parents into their children. 

Key Findings

Optimal policy in the US is characterized by higher non-tertiary and tertiary education subsidies. There exists a strong complementarity between these instruments. Thus, welfare effects of tertiary education subsidies increase if non-tertiary education subsidies are in place.

Policy Implications

Education financing in the US should be more European.

Zugehörige publizierte Papers

Forscher/innen	Titel	Jahr	Bereich	Keywords
Dirk Krueger, Alexander Ludwig, Sergio Villalvazo	Optimal Taxes on Capital in the OLG Model with Uninsurable Idiosyncratic Income Risk Journal of Public Economics	2021	Macro Finance	Idiosyncratic riskTaxation of capitalOverlapping generationsPrecautionary savingPecuniary externalities
Tobias Tröger	Regulation of Crowdfunding in Germany Legal Aspects of Crowdfunding. In: Ius Comparatum - Global Studies in Comparative Law (Springer)	2021	Macro Finance	crowdfunding, crowdsponsoring, crowdlending, crowdinvesting, contract law, conflict of laws, banking regulation, securities regulation

Zugehörige Working Papers

Nr.	Forscher/innen	Titel	Jahr	Bereich	Keywords
201	Dirk Krueger, Alexander Ludwig	Optimal Taxes on Capital in the OLG Model with Uninsurable Idiosyncratic Income Risk	2018	Macro Finance	Idiosyncratic Risk, Taxation of Capital, Overlapping Generations, Precautionary Saving, Pecuniary Externality
110	Dirk Krueger, Philipp Krüger, Alexander Ludwig	On the Optimal Provision of Social Insurance	2015	Macro Finance	Progressive Taxation, Education Subsidy, Transitional Dynamics
184	Tobias Tröger	Remarks on the German Regulation of Crowdfunding	2017	Macro Finance	crowdinvesting, crowdfunding, fintech, financial stability, market infrastructure, investor protection
199	Tobias Tröger	Regulation of Crowdfunding in Germany	2018	Macro Finance	crowdfunding, crowdsponsoring, crowdlending, crowdinvesting, contract law, conflict of laws, banking regulation, securities regulation

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