Redistribution and Education Subsidies are Siamese Twins

We develop a model of human capital formation with endogenous labor supply and heterogeneous agents to explore the optimal level of education subsidies along with the optimal progressive schedule of the labor income tax and optimal capital income taxes.Subsidies on education ensure efficiency in human capital accumulation, while taxes on skilled labor help to redistribute income towards the less able.We thus provide a rationale for the widely observed presence of education subsidies.The actually observed tax codes and level of education subsidies suggest that a large part of education subsidies can be justified on these grounds.redistribution;education;subsidies;human capital;taxation;income tax

Redistribution and Education Subsidies are Siamese Twins

We develop a model of human capital formation with endogenous labor supply and heterogeneous agents to explore the optimal level of education subsidies along with the optimal progressive schedule of the labor income tax and optimal capital income taxes.Subsidies on education ensure efficiency in human capital accumulation, while taxes on skilled labor help to redistribute income towards the less able.We thus provide a rationale for the widely observed presence of education subsidies.The actually observed tax codes and level of education subsidies suggest that a large part of education subsidies can be justified on these grounds.

Redistribution and Education Subsidies are Siamese Twins

We develop a model of human capital formation with endogenous labor supply and heterogeneous agents to explore the optimal level of education subsidies along with the optimal progressive schedule of the labor income tax and optimal capital income taxes.Subsidies on education ensure efficiency in human capital accumulation, while taxes on skilled labor help to redistribute income towards the less able.We thus provide a rationale for the widely observed presence of education subsidies.The actually observed tax codes and level of education subsidies suggest that a large part of education subsidies can be justified on these grounds

Proper ferroelastic phase transitions in thin epitaxial films with symmetry-conserving and symmetry-breaking misfit strains

We study how the ferroelastic domain structure sets in in an epitaxial film of a material with second order proper ferroelastic transition. The domain structures considered are similar to either $a_{1}/a_{2}/a_{1}/a_{2}$ or $c/a/c/a$ structures in perovskite ferroelectrics. If the "extrinsic" misfit strain, not associated with the transition, does not break the symmetry of the high-temperature phase, the phase transition in the film occurs at somewhat lower temperature compared to the bulk. The loss of stability then occurs with respect to a sinusoidal strain wave, which evolves into the domain structure with practically the same geometry and approximately the same period. In the presence of the symmetry-breaking component of the misfit strain ("extrinsic" misfit) the character of the phase transition is qualitatively different. In this case it is a {\em topological} transition between single-domain and multi-domain states, which starts from a low density of the domain walls.Comment: 7 pages, 2 figures, REVTeX 3.

Human Capital and Optimal Positive Taxation of Capital Income

This paper analyzes optimal linear taxes on capital and labor incomes in a life-cycle model of human capital investment, financial savings, and labor supply with heteroge- nous individuals. A dual income tax with a positive marginal tax rate on not only labor income but also capital income is optimal. The positive tax on capital income serves to alleviate the distortions of the labor tax on human capital accumulation. The optimal marginal tax rate on capital income is lower than that on labor income if savings are elastic compared to investment in human capital; substitution between inputs in human capital formation is difficult; and most investments in human capital are verifiable. Numerical calculations suggest that the optimal marginal tax rate on capital income is close to the tax rate on labor income

Human capital and optimal positive taxation of capital income

This paper analyzes optimal linear and non-linear taxes on capital and labor incomes in a life-cycle model of human capital investment, financial savings, and labor supply with heterogenous individuals. A dual income tax with a positive marginal tax rate on not only labor income but also capital income is optimal. The positive tax on capital income serves to alleviate the distortions of the labor tax on human capital accumulation. The optimal marginal tax rate on capital income is lower than that on labor income if savings are elastic compared to investment in human capital, substitution between verifiable and non-verifiable inputs in human capital formation is difficult, and most investments in human capital are verifiable so that education subsidies can directly reduce the tax wedge on learning. Numerical calculations suggest that the optimal marginal tax rate on capital income is substantial

Optimal Taxation of Human Capital and the Earnings Function

This paper explores how the specification of the earnings function impacts the optimal tax treatment of human capital. If education is complementary to labor effort, education should be subsidized to offset tax distortions on labor supply. However, if most of the education is enjoyed by high ability households, education should be taxed in order to redistribute resources to the poor. The paper identifies the exact conditions under which these two effects cancel and education should be neither taxed nor subsidized. In particular, with non-linear tax instruments, education should be weakly separable from labor and ability in the earnings function. With linear taxes, education should also feature a constant elasticity in a weakly separable earnings function

The spectral shift function and spectral flow

This paper extends Krein's spectral shift function theory to the setting of semifinite spectral triples. We define the spectral shift function under these hypotheses via Birman-Solomyak spectral averaging formula and show that it computes spectral flow.Comment: 47 page