Inequality, Majority Voting And The Redistributive Effects Of Public Education Funding
AbstractThis paper documents that in poor countries redistribution in cash is negligible. To the extent that public education funding is redistributive, the lion's share of redistribution in poor countries is through public education budgets. I present a simple model of how inequality determines redistribution through public education spending when funding decisions are made through majority voting. Contrary to T. Persson and G. Tabellini, and contrary to conventional wisdom, in the present model higher inequality leads to less redistribution if the curvature in the utility function is sufficiently high. I argue that large curvature of the utility function is empirically relevant. Copyright 2004 Blackwell Publishing Ltd
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Bibliographic InfoArticle provided by Wiley Blackwell in its journal Pacific Economic Review.
Volume (Year): 9 (2004)
Issue (Month): 2 (06)
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Web page: http://www.blackwellpublishing.com/journal.asp?ref=1361-374X
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- Tetsuo Ono, 2013. "Public Education and Social Security: A Political Economy Approach," Discussion Papers in Economics and Business 13-06-Rev, Osaka University, Graduate School of Economics and Osaka School of International Public Policy (OSIPP).
- Tetsuo Ono, 2013. "Inequality Dynamics and the Politics of Redistribution," Discussion Papers in Economics and Business 12-09-Rev, Osaka University, Graduate School of Economics and Osaka School of International Public Policy (OSIPP).
- Catalina Gutiérrez & Ryuichi Tanaka, 2009. "Inequality and education decisions in developing countries," Journal of Economic Inequality, Springer, vol. 7(1), pages 55-81, March.
- Tetsuo Ono, 2013. "Public Education and Social Security: A Political Economy Approach," Discussion Papers in Economics and Business 13-06, Osaka University, Graduate School of Economics and Osaka School of International Public Policy (OSIPP).
- Yamauchi, Futoshi & Nishiyama, Shinichi, 2005. "Community, inequality, and local public goods: Evidence from School Financing in South Africa," FCND discussion papers 201, International Food Policy Research Institute (IFPRI).
- Kwabena Gyimah-Brempong & Gregory N. Price, 2006. "Crime and Punishment: And Skin Hue Too?," American Economic Review, American Economic Association, vol. 96(2), pages 246-250, May.
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