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Should Educational Policies Be Regressive?

Author

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  • DANIEL GOTTLIEB
  • HUMBERTO MOREIRA

Abstract

In this paper, we show that when the government is able to transfer wealth between generations, regressive policies are no longer optimal. The optimal educational policy can be decentralized through appropriate Pigouvian taxes and credit provision, is not regressive, and provides equality of opportunities in education (in the sense of irrelevance of parental income for the amount of education). Moreover, in the presence of default, the optimal policy can be implemented through income-contingent payments.
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Suggested Citation

  • Daniel Gottlieb & Humberto Moreira, 2012. "Should Educational Policies Be Regressive?," Journal of Public Economic Theory, Association for Public Economic Theory, vol. 14(4), pages 601-623, August.
    • Handle: RePEc:bla:jpbect:v:14:y:2012:i:4:p:601-623
    DOI: j.1467-9779.2012.01554.x
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    File URL: http://hdl.handle.net/10.1111/j.1467-9779.2012.01554.x
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    Cited by:

    1. Youngmin Park, 2018. "Inequality in Parental Transfers, Borrowing Constraints, and Optimal Higher Education Subsidies," 2018 Meeting Papers 623, Society for Economic Dynamics.
    2. Azevedo, Eduardo M. & Salgado, Pablo, 2012. "Universidade pública deve ser grátis para quem pode pagar?," Revista Brasileira de Economia - RBE, EPGE Brazilian School of Economics and Finance - FGV EPGE (Brazil), vol. 66(1), March.

    More about this item

    JEL classification:

    • I28 - Health, Education, and Welfare - - Education - - - Government Policy
    • H23 - Public Economics - - Taxation, Subsidies, and Revenue - - - Externalities; Redistributive Effects; Environmental Taxes and Subsidies
    • I22 - Health, Education, and Welfare - - Education - - - Educational Finance; Financial Aid
    • H52 - Public Economics - - National Government Expenditures and Related Policies - - - Government Expenditures and Education

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