Should Education Be Subsidized?

Philip Trostel

Public Finance Review, 1996, vol. 24, issue 1, 3-24

Abstract: An efficiency argument for public subsidies to education is proposed in this study. Subsidizing education is shown to be welfare improving because it makes the tax system less distortionary. Income taxation causes a less than efficient amount of investment in human capital, and induces an inefficient mix of human capital investments. Taxation causes too few goods, and relatively too much time, to be invested in human capital. Lowering the private cost ofgoods invested in human capital counteracts these tax distortions, thus it can be efficient to subsidize education.

Date: 1996
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (14)

Downloads: (external link)
https://journals.sagepub.com/doi/10.1177/109114219602400101 (text/html)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:sae:pubfin:v:24:y:1996:i:1:p:3-24

DOI: 10.1177/109114219602400101

Access Statistics for this article

More articles in Public Finance Review
Bibliographic data for series maintained by SAGE Publications ().