The public-finance subproject (PI2) will examine whether further justification for state intervention exists after a transition from a government financed system to a discrimination-free tuition system in tertiary education, supplemented by Pigouvian subsidies.
An initial project area will examine whether and to what extent educational subsidies are necessary in order to implement an optimal “trade-off” between distorting factor taxes and net educations yields that intensify inequality. Special attention is devoted to the interdependence of national solutions when highly qualified workers are mobile.
The second project area deals with the question of whether educational subsidies can have a welfare enhancing effect if, along with tax-induced distortions on factor markets, also risk effects have an influence on individual rational calculations. Particular attention will be devoted to the interdependence between risky human capital investments and investments in a portfolio of secure and risky capital investments.
Klick, Jonathan (with Sven Neelsen and Thomas Stratmann), The Effect of Abortion Liberalization on Sexual Behavior: International Evidence, Ifo Working Paper No. 79, 2009 (Abstract / Download)
International Tax and Public Finance 7, 2009
FinanzArchiv/Public Finance Analysis 65, 2009
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