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Income Distribution, Communities, and the Quality of Public Education

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  • Fernandez, Raquel
  • Rogerson, Richard

Abstract

This paper develops a multicommunity model and analyzes policies that affect spending on public education and its distribution across communities. The authors find that policies that on net increase the fraction of the (relatively) wealthiest residents in the poorest community are welfare enhancing; policies that decrease this fraction can make all worse off. Appropriately financed policies to redistribute income toward the poorest, increase spending on education in the poorest community, and make the poorest community more attractive to relatively wealthier individuals produce chain reactions in which the quality of education increases and tax rates fall in all communities. Copyright 1996, the President and Fellows of Harvard College and the Massachusetts Institute of Technology.

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Bibliographic Info

Article provided by MIT Press in its journal Quarterly Journal of Economics.

Volume (Year): 111 (1996)
Issue (Month): 1 (February)
Pages: 135-64

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Handle: RePEc:tpr:qjecon:v:111:y:1996:i:1:p:135-64

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  1. Galor, Oded & Zeira, Joseph, 1988. "Income Distribution and Macroeconomics," MPRA Paper 51644, University Library of Munich, Germany, revised 01 Sep 1989.
  2. Marshall, Alfred, 1890. "The Principles of Economics," History of Economic Thought Books, McMaster University Archive for the History of Economic Thought, number marshall1890.
  3. William G. Gale & John Karl Scholz, 1994. "Intergenerational Transfers and the Accumulation of Wealth," Journal of Economic Perspectives, American Economic Association, vol. 8(4), pages 145-160, Fall.
  4. Upton, Charles, 1981. "An equilibrium model of city size," Journal of Urban Economics, Elsevier, vol. 10(1), pages 15-36, July.
  5. Nakamura, Ryohei, 1985. "Agglomeration economies in urban manufacturing industries: A case of Japanese cities," Journal of Urban Economics, Elsevier, vol. 17(1), pages 108-124, January.
  6. Henderson, Vernon & Becker, Randy, 2000. "Political Economy of City Sizes and Formation," Journal of Urban Economics, Elsevier, vol. 48(3), pages 453-484, November.
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