Nationaløkonomisk tidsskrift,
Nationaløkonomisk Forening

Abstract: This article examines the effects of an increase in the limit for paying additional income tax, upper level (in Danish: topskattegrænsen) on the choice of education, economic growth, welfare and central macroeconomic variables. The policyexperiment is evaluated using the dynamic CGE-model DREAM extended with an endogenous choice of education, endogenous growth and a progressive tax system. The main findings are that the policy-experiment has a positive but limited effect on the educational level and therefore on the long run growth rate, because growth is determined by accumulation of human capital in this model. The effects on the choice of education are reduced by a negative feed back effect from a suppressed wage, when the supply of educated individuals increases. When skill-biased technological change is introduced, the feed back effect is reduced, and the effect on the educational level and growth is increased further

Keywords: skat; uddannelse; vækst

JEL-codes: A10

Language: Danish

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