期刊名称：CORE Discussion Papers / Center for Operations Research and Econometrics (UCL), Louvain
出版年度：2009
卷号：1
出版社：Center for Operations Research and Econometrics (UCL), Louvain
摘要：The ELIE scheme of Kolm taxes labour capacities instead of labour income in
order to circumvent the distortionary effect of taxation on labour supply. Still, Kolm
does not study the impact of ELIE on human capital formation and investment. In
this paper, we build an overlapping generations (OLG) model with heterogenous
agents and endogenous growth driven by investment in human capital. We study
the effect of ELIE on education investment and other aggregate economic variables.
Calibrating the model to French data, we highlight a trade-off between growth and
redistribution. With a perfect credit market, ELIE is successful in reducing
inequalities and poverty, but it is at the expense of lower investment in education
and slower growth. In an economy with an imperfect credit market where
individuals cannot borrow to educate, the tradeoff between growth and
redistribution is not overturned but is less severe. However, it is possible to
overturn completely that trade-off simply by changing the base of taxation for the
young generation which is equivalent to subsidising education.
