scholarly journals Liquidity Constraints, Fiscal Externalities and Optimal Tuition Subsidies

2015 ◽  
Author(s):  
Nicholas Lawson
Keyword(s):  
Liquidity Constraints ◽  
Fiscal Externalities ◽  
Tuition Subsidies

scholarly journals Liquidity Constraints, Fiscal Externalities and Optimal Tuition Subsidies

2017 ◽  
Vol 9 (4) ◽  
pp. 313-343 ◽  
Author(s):  
Nicholas Lawson
Keyword(s):  
Capital Accumulation ◽  
Structural Model ◽  
Liquidity Constraints ◽  
Relative Importance ◽  
Tax Base ◽  
Sufficient Statistics ◽  
Subsidy Policy ◽  
Fiscal Externalities ◽  
Tuition Subsidies ◽  
Tuition Subsidy

A large literature focuses on two important rationales for government subsidies to college students: positive fiscal externalities from a larger tax base, and liquidity constraints. This paper provides a first attempt to gauge the relative importance of these mechanisms. I use US data in combination with two modeling approaches: calibration of a simple structural model of human capital accumulation, and a ”sufficient statistics” approach. The resulting optimal subsidies are larger than median public tuition by about $3,000 per year. This finding is driven by fiscal externalities; optimal tuition subsidy policy is not sensitive to the extent of liquidity constraints. (JEL H52, H75, I22, I23, I28)

Liquidity constraints and family labor participation

2021 ◽  
pp. 1-22
Author(s):  
Pengpeng Yue ◽  
Aslihan Gizem Korkmaz ◽  
Zhichao Yin ◽  
Haigang Zhou
Keyword(s):  
Liquidity Constraints ◽  
Labor Participation ◽  
Family Labor
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