| 简介： | This paper studies a dynamic Mirrlees model in which agents can accumulate privately observed human capital through education over the life cycle, but private consumption expenses may be disguised as expenses for education purposes. In this setting, distortions in the resulting constrained efficient allocation are characterized by positive intertemporal wedges, negative intratemporal wedges early and positive intratemporal wedges later in the life cycle. These wedges serve as mechanisms to eliminate information-induced distortions to learning, so agents are deterred from under-investing in human capital, over-saving, and shirking during their life cycle. We also construct a tax system, in which these wedges are represented by linear capital and labor income taxes that can implement constrained efficient allocations as an equilibrium in a market economy. |