Capital accumulation and taxation in a general equilibrium model with risky human capital

Lord, William; Rangazas, Peter

doi:10.1016/s0164-0704(98)00070-6

Cited by 8 publications

(1 citation statement)

References 38 publications

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“…They are also grateful for valuable comments from two anonymous referees and from seminar participants at the UK Public Economics Working Group, University of Birmingham, Dartmouth College, University of Maine, Texas A&M University, and University of Warwick. Lucas (1988Lucas ( , 1993, Lord (1989), Becker et al (1990), King and Rebelo (1990), Davies and Whalley (1991), Tamura (1991), Ehrlich and Lui (1991), Jones and Manuelli (1992), Ravikumar (1992, 1997), Nerlove et al (1993), Mulligan and Sala-i-Martin (1993), Caballé and Santos (1993), Barro and Sala-i-Martin (1995), De Gregorio (1996), Mino (1996), Dupor et al (1996), Kaplow (1996), Steurle (1996), Agell and Lommerud (1997), Perroni (1997), Heckman et al (1998), Lin (1998), Lord and Rangazas (1998), Kim (1998), and Heckman (2000).…”

Section: Acknowledgementsmentioning

confidence: 99%

Education and Work

Trostel

Walker

2006

Education Economics

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This paper examines the relationship between the incentives to work and to invest in human capital through education in a lifecycle optimizing model. These incentives are shown to be mutually reinforcing in a simple stylized model. This theoretical prediction is investigated empirically using three large micro datasets covering a broad range of countries. As one might expect, education and work are strongly positively correlated. This correlation has important implications for models of fiscal policy and economic growth. It also has important implications for the estimation of labor supply and the rate of return to education.Education, labor supply, lifecycle,

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Section: Acknowledgementsmentioning

confidence: 99%

Education and Work

Trostel

Walker

2006

Education Economics

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Taxation, human capital formation, and long-run growth with private investment in education

Tobing

2011

Journal of Asian Economics

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Natural disasters in a two-sector model of endogenous growth

Ikefuji

Horii

2012

Journal of Public Economics

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Using an endogenous growth model with physical and human capital accumulation, this paper considers the sustainability of economic growth when the use of a polluting input (e.g., fossil fuels) intensifies the risk of capital destruction through natural disasters. We find that growth is sustainable only if the tax rate on the polluting input increases over time. The long-term rate of economic growth follows an inverted V-shaped curve relative to the growth rate of the environmental tax, and it is maximized by the least aggressive tax policy of those that asymptotically eliminate the use of polluting inputs. Unavailability of insurance can accelerate or decelerate the growth-maximizing speed of the tax increase depending on the relative significance of the risk premium and precautionary savings effects. Welfare is maximized under a milder environmental tax policy, especially when the pollutants accumulate gradually.

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Capital accumulation and taxation in a general equilibrium model with risky human capital

Cited by 8 publications

References 38 publications

Education and Work

Education and Work

Taxation, human capital formation, and long-run growth with private investment in education

Natural disasters in a two-sector model of endogenous growth

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