Education choice under uncertainty and public policy

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Show simple item record Hogan, Vincent (Vincent Peter) Walker, Ian 2009-04-27T13:13:26Z 2009-04-27T13:13:26Z Institute for the Study of Social Change, 2002 en 2002-09-05
dc.description.abstract We analyse how progressive taxation and education subsidies affect schooling deci- sions when the returns to education are stochastic. We use the theory of real options to solve the problem of education choice in a dynamic, life-cycle consistent, stochastic model. We show that education attainment will be an increasing function of the risk associated with education. Furthermore, this result holds whether or not agents can borrow in order to pay for education and regardless of the degree of risk aversion. We also examine the link between consumption over the life-cycle and education choice to show that higher initial wealth will usually - but not always - have a positive effect on education attainment. Finally we show that progressive taxes will tend to reduce education attainment for the poor but increase it for the rich. en
dc.format.extent 699373 bytes
dc.format.mimetype application/pdf
dc.language.iso en en
dc.publisher University College Dublin. Institute for the Study of Social Change (Geary Institute) en
dc.relation.ispartofseries ISSC Discussion Paper Series en
dc.relation.ispartofseries 2002/09 en
dc.relation.uri Education choice under uncertainty and public policy (January 2003) en
dc.relation.uri en
dc.subject Education choice en
dc.subject Dynamic optimization en
dc.subject Optimal stopping en
dc.subject Uncertainty en
dc.subject.classification J24 en
dc.subject.classification C61 en
dc.subject.classification D81 en
dc.subject.lcsh Education and state--Great Britain en
dc.subject.lcsh Human capital en
dc.subject.lcsh Education and state--Europe en
dc.title Education choice under uncertainty and public policy en
dc.type Working Paper en
dc.internal.authorurl Vincent Hogan (web page) en
dc.internal.authorurl en
dc.internal.authorid UCD0011 en
dc.internal.availability Full text available en
dc.internal.webversions en
dc.status Not peer reviewed en
dc.neeo.contributor Hogan|Vincent (Vincent Peter)|aut|UCD0011
dc.neeo.contributor Walker|Ian|aut|

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