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The Effect of Deficit Finance on Human Capital

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  • Trostel, Philip A.

Abstract

A study that measures the effects of human capital investment on the deficit financing costs of government spending finds that the lower current and higher future tax rates of deficit financing increases opportunity costs and reduces the benefits of investments.

Suggested Citation

  • Trostel, Philip A., 1995. "The Effect of Deficit Finance on Human Capital," National Tax Journal, National Tax Association;National Tax Journal, vol. 48(4), pages 531-546, December.
    • Handle: RePEc:ntj:journl:v:48:y:1995:i:4:p:531-46
    DOI: 10.1086/NTJ41789169
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    References listed on IDEAS

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    1. Lord, William, 1989. "The transition from payroll to consumption receipts with endogenous human capital," Journal of Public Economics, Elsevier, vol. 38(1), pages 53-73, February.
    2. Browning, Edgar K., 1994. "The non-tax wedge," Journal of Public Economics, Elsevier, vol. 53(3), pages 419-433, March.
    3. Trostel, Philip A, 1993. "The Effect of Taxation on Human Capital," Journal of Political Economy, University of Chicago Press, vol. 101(2), pages 327-350, April.
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    8. Ballard, Charles L., 1990. "Marginal welfare cost calculations : Differential analysis vs. balanced-budget analysis," Journal of Public Economics, Elsevier, vol. 41(2), pages 263-276, March.
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    11. Hansson, Ingemar & Stuart, Charles, 1985. "Tax revenue and the marginal cost of public funds in Sweden," Journal of Public Economics, Elsevier, vol. 27(3), pages 331-353, August.
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    14. Trostel, Philip A., 1993. "The nonequivalence between deficits and distortionary taxation," Journal of Monetary Economics, Elsevier, vol. 31(2), pages 207-227, April.
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    Cited by:

    1. Riera Prunera, Maria Carmen, 2000. "A Role For Deficit In Economic Growth," ERSA conference papers ersa00p335, European Regional Science Association.
    2. Samuel O.Okafor & Olisaemeka D. Maduka & Ann N. Ike & Benedict I. Uzoechina, 2017. "Tax-financing of Budget Deficits in LDCs: Re-validation of Laffer Curve Theory," Applied Economics and Finance, Redfame publishing, vol. 4(3), pages 89-101, May.
    3. Maria Carme Riera i Prunera, 2003. "Deficit, human capital and economic growth dynamics," Working Papers in Economics 102, Universitat de Barcelona. Espai de Recerca en Economia.

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