Are Higher Education Subsidies Second Best?

18 Pages Posted: 18 May 2004

See all articles by Berthold U. Wigger

Berthold U. Wigger

University of Mannheim - Department of Economics; CESifo (Center for Economic Studies and Ifo Institute)

Abstract

An optimal taxation framework is considered in which part of the population can take advantage of investment in higher education. It is shown that social welfare can sometimes be increased by supplementing linear income taxes with a subsidy to material investment in higher education, but that social welfare can never be increased by supplementing a non-linear income tax with such a subsidy.

Suggested Citation

Wigger, Berthold U., Are Higher Education Subsidies Second Best?. Available at SSRN: https://ssrn.com/abstract=537950

Berthold U. Wigger (Contact Author)

University of Mannheim - Department of Economics ( email )

D-68131 Mannheim
Germany
+49 621 181 1797 (Phone)
+49 621 181 1794 (Fax)

CESifo (Center for Economic Studies and Ifo Institute)

Poschinger Str. 5
Munich, DE-81679
Germany

HOME PAGE: http://www.CESifo.de

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