A Dynamic General Equilibrium Analysis of the Political Economy of Public Education
AbstractThe primary objective of this paper is to highlight the distinct roles of altruism and of self-interest in the political determination of a public education policy. I assess the relative importance of three factors in the determination of the equilibrium level of this policy: altruism, the impact of public funding of education on social security benefits and its impact on factor prices. I then focus on the impact of implementing a social security system on the equilibrium levels of education funding and on welfare. I find that although, in the benchmark economy, the presence of social security might generate support for public funding of education, its overall effect on the well-being of individuals is negative for any level of social security taxation.
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Bibliographic InfoPaper provided by University of Delaware, Department of Economics in its series Working Papers with number 05-05.
Length: 29 pages
Date of creation: 2005
Date of revision:
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Web page: http://www.lerner.udel.edu/departments/economics/department-economics/
More information through EDIRC
Public Education; Voting; General Equilibrium.;
Other versions of this item:
- Jorge Soares, 2006. "A dynamic general equilibrium analysis of the political economy of public education," Journal of Population Economics, Springer, vol. 19(2), pages 367-389, June.
- D78 - Microeconomics - - Analysis of Collective Decision-Making - - - Positive Analysis of Policy Formulation and Implementation
- E62 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - Fiscal Policy
- I22 - Health, Education, and Welfare - - Education - - - Educational Finance; Financial Aid
This paper has been announced in the following NEP Reports:
- NEP-ALL-2005-11-05 (All new papers)
- NEP-DGE-2005-11-05 (Dynamic General Equilibrium)
- NEP-EDU-2005-11-05 (Education)
- NEP-MAC-2005-11-05 (Macroeconomics)
- NEP-POL-2005-11-05 (Positive Political Economics)
- NEP-URE-2005-11-05 (Urban & Real Estate Economics)
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Thomas F. Cooley & Jorge Soares, 1999. "A Positive Theory of Social Security Based on Reputation," Journal of Political Economy, University of Chicago Press, vol. 107(1), pages 135-160, February.
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- Kaganovich, Michael & Zilcha, Itzhak, 1999.
"Education, social security, and growth,"
Journal of Public Economics,
Elsevier, vol. 71(2), pages 289-309, February.
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- Soares, Jorge, 2003. "Self-interest and public funding of education," Journal of Public Economics, Elsevier, vol. 87(3-4), pages 703-727, March.
- Gerhard Glomm & Michael Kaganovich, 2003. "Distributional Effects of Public Education in an Economy with Public Pensions," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 44(3), pages 917-937, 08.
- David Altig, 2001. "Simulating Fundamental Tax Reform in the United States," American Economic Review, American Economic Association, vol. 91(3), pages 574-595, June.
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- 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).
- Tetsuo Ono, 2014. "Economic Growth and the Politics of Intergenerational Redistribution," Discussion Papers in Economics and Business 14-17, Osaka University, Graduate School of Economics and Osaka School of International Public Policy (OSIPP).
- Michael Kaganovich & Volker Meier, 2008.
"Social Security Systems, Human Capital, and Growth in a Small Open Economy,"
CESifo Working Paper Series
2488, CESifo Group Munich.
- Michael Kaganovich & Volker Meier, 2012. "Social Security Systems, Human Capital, and Growth in a Small Open Economy," Journal of Public Economic Theory, Association for Public Economic Theory, vol. 14(4), pages 573-600, 08.
- Kaganovich, Michael & Meier, Volker, 2012. "Social Security Systems, Human Capital, and Growth in a Small Open Economy," Munich Reprints in Economics 19536, University of Munich, Department of Economics.
- 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).
- Creedy, John & Moslehi, Solmaz, 2012. "The Composition of Government Expenditure with Alternative Choice Mechanisms," Working Paper Series 2433, Victoria University of Wellington, Chair in Public Finance.
- Monisankar Bishnu & Min Wang, 2013. "The Political intergenerational welfare state: A Unified framework," Indian Statistical Institute, Planning Unit, New Delhi Discussion Papers 13-08, Indian Statistical Institute, New Delhi, India.
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