Working Paper
Higher Education Financing and Income Redistribution
Berthold U. Wigger
CESifo, Munich, 2001
CESifo Working Paper No. 527
CESifo, Munich, 2001
CESifo Working Paper No. 527
This paper considers an optimal income tax cum higher education policy. It shows that in the presence of an optimal income tax system higher education should be taxed rather than subsidized. Furthermore, income taxes should become less progressive when an optimal higher education policy is introduced.