Optimal Taxation and Education Subsidies
| Project Start: | 09/2016 |
| Status: | Completed |
| Researchers: | Fabian Becker, Dirk Krueger, Alexander Ludwig, Faisal Sohail |
| Area: | Macro Finance |
| Funded by: | LOEWE |
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.
Related Published Papers
| Author/s | Title | Year | Area | 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 |
Related Working Papers
| No. | Author/s | Title | Year | Area | 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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