IDEAS home Printed from https://ideas.repec.org/p/ivi/wpasad/2010-11.html
   My bibliography  Save this paper

The effects of the tax system on education decisions and welfare

Author

Listed:
  • Lari Arthur Viianto

    (Universidad de Alicante)

Abstract

I study the effects of a linear tax schedule on educational decisions and welfare in a two period model where the educational decision is discrete and its return is uncertain. I find that a linear tax rate has a positive effect on the number of agents who decide to acquire higher education. This effect becomes negative when the revenue is returned as a lump-sum transfer. The government can influence the education level to some extent using a linear tax schedule. However this policy always has a negative welfare effect. I also find that if there is a revenue need a welfare maximizing government will prefer a linear tax to a lump-sum tax.

Suggested Citation

  • Lari Arthur Viianto, 2010. "The effects of the tax system on education decisions and welfare," Working Papers. Serie AD 2010-11, Instituto Valenciano de Investigaciones Económicas, S.A. (Ivie).
    • Handle: RePEc:ivi:wpasad:2010-11
    as

    Download full text from publisher

    File URL: http://www.ivie.es/downloads/docs/wpasad/wpasad-2010-11.pdf
    File Function: Fisrt version / Primera version, 2010
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Annette Alstadsæter, 2001. "Does the Tax System Encourage too much Education?," CESifo Working Paper Series 612, CESifo.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Jorge González-Chapela, 2010. "Things that make us different: analysis of variance in the use of time," Working Papers. Serie AD 2010-18, Instituto Valenciano de Investigaciones Económicas, S.A. (Ivie).
    2. Francisco Martínez-Sánchez & Miguel González-Maestre, 2010. "The role of program quality and publicly-owned platforms in the free to air broadcasting industry," Working Papers. Serie AD 2010-19, Instituto Valenciano de Investigaciones Económicas, S.A. (Ivie).
    3. Sonia Oreffice & Climent Quintana, 2009. "Anthropometry and Socioeconomics in the Couple: Evidence from the PSID," Working Papers 2009-22, FEDEA.
    4. Anna P. Kireenko & Tatyana Y. Krasikova, 2023. "Personal Income Tax Deductions and Demand for Education: Case of Russia," Journal of Tax Reform, Graduate School of Economics and Management, Ural Federal University, vol. 9(2), pages 145-160.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.

      More about this item

      Keywords

      Education; taxation; welfare.;
      All these keywords.

      JEL classification:

      • I20 - Health, Education, and Welfare - - Education - - - General
      • I30 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - General
      • H20 - Public Economics - - Taxation, Subsidies, and Revenue - - - General
      • H31 - Public Economics - - Fiscal Policies and Behavior of Economic Agents - - - Household

      NEP fields

      This paper has been announced in the following NEP Reports:

      Statistics

      Access and download statistics

      Corrections

      All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ivi:wpasad:2010-11. See general information about how to correct material in RePEc.

      If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

      If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

      If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

      For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Departamento de Edición (email available below). General contact details of provider: https://edirc.repec.org/data/ievages.html .

      Please note that corrections may take a couple of weeks to filter through the various RePEc services.

      IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.