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Trade and Tax Reforms in a Cash-in-Advance Economy

Theodore Palivos and Nikos Tsakiris ()

University of Cyprus Working Papers in Economics from University of Cyprus Department of Economics

Abstract: This paper investigates the determinants of longevity at a macroeconomic level, emphasizing the important role played by education. To analyze the determinants of longevity, we build a model where households intentionally invest in health and education, and where education exerts external effects on longevity. Performing an empirical analysis using data across 71 countries, we find that society’s tertiary education attainment rate is important for longevity, in addition to any role that basic education plays for life expectancy at the individual level. This finding uncovers a key externality of education, consistent with the theoretical hypothesis advanced in our macroeconomic model.

Keywords: Tariff reform; Tax reform; Cash-in-Advance Constraint (search for similar items in EconPapers)
Date: 2009-04
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Related works:
Journal Article: Trade and Tax Reforms in a Cash-in-Advance Economy (2011) Downloads
Working Paper: Trade and Tax Reforms in a Cash-in-Advance Economy (2010) Downloads
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