Publisher:
Univ., Center for Economic Studies [u.a.], Munich
We propose a dynamic general equilibrium model with human capital accumulation to evaluate the economic consequences of compulsory services (such as military draft or social services). Our analysis identifies a so far ignored dynamic cost arising...
more
ifo Institut für Wirtschaftsforschung an der Universität München, Bibliothek
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S32-774 a
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Location:
ifo Institut für Wirtschaftsforschung an der Universität München, Bibliothek
Signature:
S32-774 b
Inter-library loan:
No inter-library loan
Location:
ifo Institut für Wirtschaftsforschung an der Universität München, Bibliothek
Signature:
S32-774 c
Inter-library loan:
No inter-library loan
We propose a dynamic general equilibrium model with human capital accumulation to evaluate the economic consequences of compulsory services (such as military draft or social services). Our analysis identifies a so far ignored dynamic cost arising from distortions in time allocation over the life-cycle. We provide conservative estimates for the excess burden that arises when the government relies on forced labor rather than on income taxation to finance public expenditures. Our results suggest that eliminating the draft could produce considerable dynamic gains, both in terms of GDP and lifetime utility.
Publisher:
CESifo, Center for Economic Studies & Ifo Institute, Munich
We propose a dynamic general equilibrium model with human capital accumulation to evaluate the economic consequences of compulsory services (such as military draft or social services). Our analysis identifies a so far ignored dynamic cost arising...
more
We propose a dynamic general equilibrium model with human capital accumulation to evaluate the economic consequences of compulsory services (such as military draft or social services). Our analysis identifies a so far ignored dynamic cost arising from distortions in time allocation over the life-cycle. We provide conservative estimates for the excess burden that arises when the government relies on forced labor rather than on income taxation to finance public expenditures. Our results suggest that eliminating the draft could produce considerable dynamic gains, both in terms of GDP and lifetime utility.