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The Effect of Deficit Finance on Human Capital

Trostel, Philip A.

Abstract:

A study that measures the effects of human capital investment on the deficit financing costs of government spending finds that the lower current and higher future tax rates of deficit financing increases opportunity costs and reduces the benefits of investments.

Citation

Trostel, Philip A. (1995), The Effect of Deficit Finance on Human Capital, National Tax Journal, 48:4, pp. 531-46