Dynamic Political Economy of Redistribution Policy: The Role of Education Costs
AbstractThis paper focuses on how education costs affect the political determination of redistribution policy via individual decision-making on education. For cases of high costs, there are multiple equilibria: the high-tax equilibrium featured by the minority of highly educated individuals and a large size of the government, and the low-tax equilibrium featured by the majority of highly educated individuals and a small size of the government. For cases of low costs, there is a unique equilibrium featured by the majority of highly educated individuals and a large size of the government.
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Bibliographic InfoPaper provided by Osaka University, Graduate School of Economics and Osaka School of International Public Policy (OSIPP) in its series Discussion Papers in Economics and Business with number 07-31-Rev.
Length: 33 pages
Date of creation: Aug 2007
Date of revision: Nov 2007
Markov perfect equilibrium; Dynamic political economy; Redistribution policy; Education costs;
Other versions of this item:
- Tetsuo Ono & Ryo Arawatari, 2008. "Dynamic political economy of redistribution policy: the role of education costs," Economics Bulletin, AccessEcon, vol. 4(13), pages 1-13.
- D72 - Microeconomics - - Analysis of Collective Decision-Making - - - Political Processes: Rent-seeking, Lobbying, Elections, Legislatures, and Voting Behavior
- 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
This paper has been announced in the following NEP Reports:
- NEP-ALL-2007-11-17 (All new papers)
- NEP-EDU-2007-11-17 (Education)
- NEP-POL-2007-11-17 (Positive Political 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.:
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Discussion Papers in Economics and Business
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08-04, Osaka University, Graduate School of Economics and Osaka School of International Public Policy (OSIPP).
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- Ryo Arawatari & Tetsuo Ono, 2008. "A Second Chance at Success: A Political Economy Perspective," Discussion Papers in Economics and Business 08-04-Rev, Osaka University, Graduate School of Economics and Osaka School of International Public Policy (OSIPP), revised Jul 2008.
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