Examines, using a simple model, the choice of appropriatecontributions of taxes and fees used to finance higher education. Atwoperiod model is developed in which individuals in cohort invest inhigher education in the first period, and the interdependences betweeneducational choice and the tax system are considered. The implicationsof majority voting and the maximization of a social welfare function,allowing for a tradeoff between equity and efficiency, are examined inprogressive and proportional tax systems.
Journal of Economic Studies – Emerald Publishing
Published: Apr 1, 1992
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