|Researchers:||Fabian Becker, Dirk Krueger, Alexander Ludwig, Faisal Sohail|
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.
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.
Education financing in the US should be more European.
|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|