IDEAS home Printed from https://ideas.repec.org/a/bla/ecorec/v75y1999i228p63-76.html
   My bibliography  Save this article

Heterogeneous Preferences, Education Expenditures and Income Distribution

Author

Listed:
  • Cardak, Buly A

Abstract

This paper introduces heterogeneous preferences to a growth model that incorporates human capital, accumulated through either public or private education. The implications of heterogeneous preferences for income and its distribution are the focus of the paper. Public education expenditure is determined through a voting mechanism where the median preference rather than median income household is the decisive voter. The paper extends the work of G. Glomm and B. Ravikumar (1992) and shows, first, that heterogeneous preferences increase income inequality in the private education model and, second, public education can overcome the added heterogeneity and reduce income inequality. The results strengthen the arguments for public education as a redistributive mechanism. Copyright 1999 by The Economic Society of Australia.

Suggested Citation

  • Cardak, Buly A, 1999. "Heterogeneous Preferences, Education Expenditures and Income Distribution," The Economic Record, The Economic Society of Australia, vol. 75(228), pages 63-76, March.
  • Handle: RePEc:bla:ecorec:v:75:y:1999:i:228:p:63-76
    as

    Download full text from publisher

    To our knowledge, this item is not available for download. To find whether it is available, there are three options:
    1. Check below whether another version of this item is available online.
    2. Check on the provider's web page whether it is in fact available.
    3. Perform a search for a similarly titled item that would be available.

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Viaene, Jean-Marie & Zilcha, Itzhak, 2008. "Human Capital and Inequality Dynamics:The Role of Education Technology," Foerder Institute for Economic Research Working Papers 275715, Tel-Aviv University > Foerder Institute for Economic Research.
    2. Limor Hatsor, 2014. "Allocation of Resources in Educational Production: The Budget Puzzle," Journal of Public Economic Theory, Association for Public Economic Theory, vol. 16(6), pages 854-883, December.
    3. repec:tou:journl:v:45:y:2017:p:99-112 is not listed on IDEAS
    4. Pham, Thi Kim Cuong, 2005. "Economic growth and status-seeking through personal wealth," European Journal of Political Economy, Elsevier, vol. 21(2), pages 407-427, June.
    5. Woode, Maame Esi & Nourry, Carine & Ventelou, Bruno, 2014. "Childhood preventive care, adult healthcare and economic growth: The role of healthcare financing," Economics Letters, Elsevier, vol. 124(1), pages 41-47.
    6. Nikos Benos, 2004. "Education Policies and Economic Growth," University of Cyprus Working Papers in Economics 4-2004, University of Cyprus Department of Economics.
    7. Andrés Rodríguez-Pose & Vassilis Tselios, 2009. "Education And Income Inequality In The Regions Of The European Union," Journal of Regional Science, Wiley Blackwell, vol. 49(3), pages 411-437.
    8. Viaene, Jean-Marie & Zilcha, Itzhak, 2002. "Capital markets integration, growth and income distribution," European Economic Review, Elsevier, vol. 46(2), pages 301-327, February.
    9. Buly Cardak & James Ted McDonald, 2004. "Neighbourhood effects, preference heterogeneity and immigrant educational attainment," Applied Economics, Taylor & Francis Journals, vol. 36(6), pages 559-572.
    10. Das, Mausumi, 2007. "Persistent inequality: An explanation based on limited parental altruism," Journal of Development Economics, Elsevier, vol. 84(1), pages 251-270, September.
    11. Thi Kim Cuong PHAM, 2004. "Wealth distribution, endogenous fiscal policy and growth: status-seeking implications," Working Papers of BETA 2004-11, Bureau d'Economie Théorique et Appliquée, UDS, Strasbourg.
    12. Burcu Kiran, 2014. "Testing the impact of educational expenditures on economic growth: new evidence from Latin American countries," Quality & Quantity: International Journal of Methodology, Springer, vol. 48(3), pages 1181-1190, May.
    13. John Creedy, 2006. "Education Vouchers: Means Testing Versus Uniformity," Department of Economics - Working Papers Series 978, The University of Melbourne.
    14. Nikos Benos, 2005. "Education Systems, Growth and Welfare," University of Cyprus Working Papers in Economics 5-2005, University of Cyprus Department of Economics.
    15. Onozaki, Tamotsu & Sieg, Gernot & Yokoo, Masanori, 2003. "Stability, chaos and multiple attractors: a single agent makes a difference," Journal of Economic Dynamics and Control, Elsevier, vol. 27(10), pages 1917-1938, August.
    16. Viaene, J.-M. & Zilcha, I., 2001. "Human Capital Formation, Income Inequality and Growth," Papers 2001-13, Tel Aviv.
    17. repec:beo:journl:v:62:y:2017:i:212:p:43-62 is not listed on IDEAS

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:bla:ecorec:v:75:y:1999:i:228:p:63-76. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Wiley Content Delivery) or (Christopher F. Baum). General contact details of provider: http://edirc.repec.org/data/esausea.html .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.