Arbeitspapier
The Dynamic Cost of the Draft
We propose a dynamic general equilibrium model with human capital accumulation to evaluate the economic consequences of compulsory services (such as military draft or social services). Our analysis identifies a so far ignored dynamic cost arising from distortions in time allocation over the life-cycle. We provide conservative estimates for the excess burden that arises when the government relies on forced labor rather than on income taxation to finance public expenditures. Our results suggest that eliminating the draft could produce considerable dynamic gains, both in terms of GDP and lifetime utility.
- Sprache
-
Englisch
- Erschienen in
-
Series: CESifo Working Paper ; No. 774
- Klassifikation
-
Wirtschaft
Computable General Equilibrium Models
Taxation, Subsidies, and Revenue: General
National Government Expenditures and Related Policies: Procurement
Time Allocation and Labor Supply
- Thema
-
conscription
draft
time allocation
distortionary taxation
computable general equilibrium models.
- Ereignis
-
Geistige Schöpfung
- (wer)
-
Lau, Morten I.
Poutvaara, Panu
Wagener, Andreas
- Ereignis
-
Veröffentlichung
- (wer)
-
Center for Economic Studies and ifo Institute (CESifo)
- (wo)
-
Munich
- (wann)
-
2002
- Handle
- Letzte Aktualisierung
-
10.03.2025, 11:42 MEZ
Datenpartner
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Objekttyp
- Arbeitspapier
Beteiligte
- Lau, Morten I.
- Poutvaara, Panu
- Wagener, Andreas
- Center for Economic Studies and ifo Institute (CESifo)
Entstanden
- 2002
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