Replication data for: Liquidity Constraints, Fiscal Externalities, and Optimal Tuition Subsidies
- Lawson, Nicholas
AbstractA 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.
Is supplement to
DOI: 10.1257/pol.20150079 (Text)
Lawson, Nicholas. “Liquidity Constraints, Fiscal Externalities and Optimal Tuition Subsidies.” American Economic Journal: Economic Policy 9, no. 4 (November 2017): 313–43. https://doi.org/10.1257/pol.20150079.
- ID: 10.1257/pol.20150079 (DOI)
Update Metadata: 2020-05-18 | Issue Number: 2 | Registration Date: 2019-10-13