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Inequality, Majority Voting And The Redistributive Effects Of Public Education Funding

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  • Gerhard Glomm

Abstract

This paper documents that in poor countries redistribution in cash is negligible. To the extent that public education funding is redistributive, the lion's share of redistribution in poor countries is through public education budgets. I present a simple model of how inequality determines redistribution through public education spending when funding decisions are made through majority voting. Contrary to T. Persson and G. Tabellini, and contrary to conventional wisdom, in the present model higher inequality leads to less redistribution if the curvature in the utility function is sufficiently high. I argue that large curvature of the utility function is empirically relevant. Copyright 2004 Blackwell Publishing Ltd

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  • Gerhard Glomm, 2004. "Inequality, Majority Voting And The Redistributive Effects Of Public Education Funding," Pacific Economic Review, Wiley Blackwell, vol. 9(2), pages 93-101, June.
  • Handle: RePEc:bla:pacecr:v:9:y:2004:i:2:p:93-101
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    Cited by:

    1. Tetsuo Ono & Yuki Uchida, 2016. "Human Capital, Public Debt, and Economic Growth: A Political Economy Analysis," Discussion Papers in Economics and Business 16-01-Rev.3, Osaka University, Graduate School of Economics and Osaka School of International Public Policy (OSIPP), revised Oct 2017.
    2. Calin Arcalean & Ioana Schiopu, 2016. "Inequality, opting-out and public education funding," Social Choice and Welfare, Springer;The Society for Social Choice and Welfare, vol. 46(4), pages 811-837, April.
    3. Ono, Tetsuo & Uchida, Yuki, 2016. "Pensions, education, and growth: A positive analysis," Journal of Macroeconomics, Elsevier, vol. 48(C), pages 127-143.
    4. Catalina GutiƩrrez & Ryuichi Tanaka, 2009. "Inequality and education decisions in developing countries," The Journal of Economic Inequality, Springer;Society for the Study of Economic Inequality, vol. 7(1), pages 55-81, March.
    5. Tetsuo Ono, 2015. "Public education and social security: a political economy approach," Economics of Governance, Springer, vol. 16(1), pages 1-25, February.
    6. Tetsuo Ono, 2016. "Inequality and the politics of redistribution," International Tax and Public Finance, Springer;International Institute of Public Finance, vol. 23(2), pages 191-217, April.
    7. Price, Gregory N., 2009. "Obesity and crime: Is there a relationship?," Economics Letters, Elsevier, vol. 103(3), pages 149-152, June.
    8. Yamauchi, Futoshi & Nishiyama, Shinichi, 2005. "Community, inequality, and local public goods: Evidence from School Financing in South Africa," FCND discussion papers 201, International Food Policy Research Institute (IFPRI).
    9. Tetsuo Ono, 2012. "Inequality Dynamics and the Politics of Redistribution," Discussion Papers in Economics and Business 12-09-Rev, Osaka University, Graduate School of Economics and Osaka School of International Public Policy (OSIPP), revised Nov 2013.
    10. Kwabena Gyimah-Brempong & Gregory N. Price, 2006. "Crime and Punishment: And Skin Hue Too?," American Economic Review, American Economic Association, vol. 96(2), pages 246-250, May.

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