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Please use this identifier to cite or link to this item: http://arks.princeton.edu/ark:/88435/dsp015m60qr90f
 Title: Taxation, Human Capital, and Uncertainty Authors: Eaton, JonathanRosen, Harvey Issue Date: 1-Jan-1979 Citation: American Economic Review, September, 1980 Series/Report no.: Working Papers (Princeton University. Industrial Relations Section) ; 117 Abstract: This paper analyzes the effect of wage and interest taxation on investment in human capital. It is shown that results derived under the assumption that human.capital is a riskless asset fail to obtain when the return on human capi- tal is uncertain. The interaction of the human capital investment decision with savings, consumption and 1abor—leisure choices are taken into account. An implication of the analysis is that, when the rate of return on human capi- tal is stochastic, efficient taxation requires positive taxation of wage income even when lump—sum taxation is feasible. URI: http://arks.princeton.edu/ark:/88435/dsp015m60qr90f Related resource: http://links.jstor.org/sici?sici=0002-8282%28198009%2970%3A4%3C705%3ATHCAU%3E2.0.CO%3B2-P Appears in Collections: IRS Working Papers

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