ホテルアルモニーサンク 2階 トロピックスタシオン
Professor Emin Gahramanov, American University of Sharjah (United Arab Emirates)
【テーマ】「Can High Discount Rates Increase Capital Accumulation?」(co-author with James Feigenbaum and Xueli Tang)
Optimal irrational behavior offers an alternative to the standard rational paradigm of neoclassical economics that is more consistent with some observed behaviors and experimental evidence. However, it often predicts that households should save much more than we observe and also exhibits huge spikes in consumption at the end of life. Here we show that if households are restricted to learning a rule that consumption is proportional to income during the working life then optimal irrational behavior (even when people are highly impatient) can yield plausible capital-output ratios with a hump-shaped consumption profile that also drops off after retirement, similar to empirical data.
Professor Xueli Tang, Deakin University (Australia)
【テーマ】「Efficient Progressivity When an Education System Sustains Long-Run Growth」(co-author with Debasis Bandyopadhyay)
Can an effective education system substitute a redistributive policy, if the system also promotes efficiency with equity to foster long-run growth? The question seems relevant for contemporary politics. Yet few have addressed it. Therefore, we reexamine the efficiency of redistribution with a progressive income tax or education finance, adding to the seminal work of Benabou (2002), by considering the impact of knowledge externality, from the atmospheric presence of the education system, on private returns to schooling. Under the popular income tax scheme, the efficient progressivity that maximizes the long-run growth rate of per capita income typically varies in an inverted U-shape if the endogenous growth comes from a greater share of knowledge externality vis-à-vis the elasticity of private expenditure in education. Under both schemes, efficient progressivity turns from positive to zero as the education system’s effectiveness in knowledge gathering from contemporary educators exceeds a threshold which, however, decreases as the relative contribution of knowledge externality to endogenous growth increases. Numerically, we find that, for the baseline US economy, the efficient progressivity turns out to be zero under the income tax scheme without an education subsidy and about 37.5% under a consumption tax-based education finance scheme with a progressive education subsidy, coupled with instruments to offset the distortionary impact of progressivity on saving.