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Financing public education when altruistic agents have retirement concerns

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  • Daniel Montolio

    ()
    (Universitat de Barcelona & IEB)

  • Amedeo Piolatto

    ()
    (Universitat de Barcelona & IEB)

Abstract

Human capital and, therefore, education have an impact on the society’s future welfare. In this paper we study the connection between the voters’ support to public education and the retirement concerns. We show that voters anticipate the positive effect of education on future pensions. The support for a publicly financed education system increases, the more redistributive the pension system is, and this is true also amongst citizens preferring a private school. We also show that the “ends against the middle” equilibrium can occur even when the voters’ preferred tax rate is decreasing in income.

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Bibliographic Info

Paper provided by Institut d'Economia de Barcelona (IEB) in its series Working Papers with number 2011/30.

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Length: 36 pages
Date of creation: 2011
Date of revision:
Handle: RePEc:ieb:wpaper:2011/11/doc2011-30

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Keywords: education; social security; voting; altruism; OLG;

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References

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Cited by:
  1. Amedeo Piolatto, 2011. "Financing public education: a political economy model with altruistic agents and retirement concerns," Working Papers. Serie AD 2011-12, Instituto Valenciano de Investigaciones Económicas, S.A. (Ivie).

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