Taxes, Tuition Fees and Education for Pleasure

Søren Bo Nielsen, Jan Rose Skaksen, Nikolaj Malchow-Møller

Publikation: Bidrag til tidsskriftTidsskriftartikelForskningpeer review

Resumé

The fact that education provides both a productive and a consumptive (nonproductive) return has important and, in some cases, dramatic implications for optimal taxes and tuition fees. Using a simple model, we show that when the consumption share in education is endogenous and tuition fees are unconstrained, the optimal tax/fee system involves regressive income taxes and high tuition fees. A progressive labor income tax system may, on the other hand, be a second-best response to politically constrained, low tuition fees. Finally, the existence of individuals with different abilities will also move the optimal income tax system toward progressivity.
OriginalsprogEngelsk
TidsskriftJournal of Public Economic Theory
Vol/bind13
Udgave nummer2
Sider (fra-til)189-215
ISSN1097-3923
DOI
StatusUdgivet - apr. 2011

Citer dette

Nielsen, Søren Bo ; Rose Skaksen, Jan ; Malchow-Møller, Nikolaj. / Taxes, Tuition Fees and Education for Pleasure. I: Journal of Public Economic Theory. 2011 ; Bind 13, Nr. 2. s. 189-215.
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Nielsen, SB, Rose Skaksen, J & Malchow-Møller, N 2011, 'Taxes, Tuition Fees and Education for Pleasure', Journal of Public Economic Theory, bind 13, nr. 2, s. 189-215. https://doi.org/10.1111/j.1467-9779.2011.01498.x

Taxes, Tuition Fees and Education for Pleasure. / Nielsen, Søren Bo; Rose Skaksen, Jan; Malchow-Møller, Nikolaj.

I: Journal of Public Economic Theory, Bind 13, Nr. 2, 04.2011, s. 189-215.

Publikation: Bidrag til tidsskriftTidsskriftartikelForskningpeer review

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