Arbeitspapier
Why to Invest in your Neighbor? Social Contract on Educational Investment
It may be in the interest of low-ability individuals to subsidize the education of high-ability individuals. Sufficient conditions are surprisingly mild: positive externalities in education and complementarity in production between human capital and labor supllied by the low-ability individuals. However, tax competition and the free mobility of the educated give rise to time-inconsistency and free-riding problems which render such a social contract infeasible and result in a subotimally low investment in education.
- Language
-
Englisch
- Bibliographic citation
-
Series: CESifo Working Paper ; No. 202
- Classification
-
Wirtschaft
- Subject
-
Externalities in education
complementarity
social contract
tax competition
- Event
-
Geistige Schöpfung
- (who)
-
Poutvaara, Panu
Kanniainen, Vesa
- Event
-
Veröffentlichung
- (who)
-
Center for Economic Studies and ifo Institute (CESifo)
- (where)
-
Munich
- (when)
-
1999
- Handle
- Last update
-
10.03.2025, 11:43 AM CET
Data provider
This object is provided by:
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. If you have any questions about the object, please contact the data provider.
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. If you have any questions about the object, please contact the data provider.
Object type
- Arbeitspapier
Associated
- Poutvaara, Panu
- Kanniainen, Vesa
- Center for Economic Studies and ifo Institute (CESifo)
Time of origin
- 1999
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