Constrained Efficiency in a Human Capital Model

• 成果类型: Article
• 署名作者: Park, Yena
• 署名单位: University of Rochester
• 刊物名称: AMERICAN ECONOMIC JOURNAL-MACROECONOMICS
• ISSN/ISSBN: 1945-7707
• DOI: 10.1257/mac.20160405
• 发表日期: 2018
• 页码: 179-214
• 关键词: Optimal taxation; education subsidies; general equilibrium; uninsurable risks; stock-market; life-cycle; accumulation; INEFFICIENCY; DYNAMICS; earnings

摘要

This paper investigates whether capital and human capital are over-accumulated in an incomplete market economy. As in Davila et al. (2012), whether capital is over-accumulated depends on how the pecuniary externalities affect insurance and redistribution. In a human capital economy, however, not only capital but also human capital generates externalities and an additional channel arises that has implications for the overaccumulation (under-accumulation) of capital (human capital). The income sources of the poor and the correlation between wealth and human capital are crucial for the implication of pecuniary externalities. Realistically calibrated models exhibit under-accumulation (overaccumulation) of capital (human capital).