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Public Education and Democracy in a Simple Model of Persistent Inequality

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  • Franciscos Koutentakis

    ()
    (University of Crete)

Abstract

The paper introduces public education fi��nanced by linear taxation into a standard model of persistent inequality. It obtains the straightforward conclusion that agents with income above the average will prefer a positive tax rate. This implies a majority of agents supporting the introduction of public education suggesting that democracy is necessary and sufficient condition for redistribution.

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Bibliographic Info

Paper provided by University of Crete, Department of Economics in its series Working Papers with number 1204.

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Date of creation: 18 Jul 2012
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Handle: RePEc:crt:wpaper:1204

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Keywords: Public education; persistent inequality; democracy;

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  1. Glomm, Gerhard & Ravikumar, B, 1992. "Public versus Private Investment in Human Capital Endogenous Growth and Income Inequality," Journal of Political Economy, University of Chicago Press, vol. 100(4), pages 818-34, August.
  2. repec:cup:cbooks:9780521855266 is not listed on IDEAS
  3. Usher, Dan, 1977. "The welfare economics of the socialization of commodities," Journal of Public Economics, Elsevier, vol. 8(2), pages 151-168, October.
  4. Romer, Thomas, 1975. "Individual welfare, majority voting, and the properties of a linear income tax," Journal of Public Economics, Elsevier, vol. 4(2), pages 163-185, February.
  5. Galor, Oded & Zeira, Joseph, 1993. "Income Distribution and Macroeconomics," Review of Economic Studies, Wiley Blackwell, vol. 60(1), pages 35-52, January.
  6. Galor, Oded, 2012. "Inequality, Human Capital Formation and the Process of Development," IZA Discussion Papers 6328, Institute for the Study of Labor (IZA).
  7. Meltzer, Allan H & Richard, Scott F, 1981. "A Rational Theory of the Size of Government," Journal of Political Economy, University of Chicago Press, vol. 89(5), pages 914-27, October.
  8. Epple, Dennis & Romano, Richard E, 1996. "Public Provision of Private Goods," Journal of Political Economy, University of Chicago Press, vol. 104(1), pages 57-84, February.
  9. Moav, Omer, 2002. "Income distribution and macroeconomics: the persistence of inequality in a convex technology framework," Economics Letters, Elsevier, vol. 75(2), pages 187-192, April.
  10. Nakajima, Tetsuya & Nakamura, Hideki, 2009. "The price of education and inequality," Economics Letters, Elsevier, vol. 105(2), pages 183-185, November.
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