Is financial openness bad for education? A political economy perspective on development
This paper presents a simple model of the links between education, democratization and economic development. In a context of imperfect capital markets, we investigate the incentives for a capitalist oligarchy to subsidize the education of poor workers and to initiate a political transition.
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Wiley Blackwell, vol. 89(3), pages 373-387.
- Mo, Pak Hung, 2000. "Income Inequality and Economic Growth," Kyklos, Wiley Blackwell, vol. 53(3), pages 293-315.
- Bruno Frey, 1971. "Why do high income people participate more in politics?," Public Choice, Springer, vol. 11(1), pages 101-105, September.
- Romer, Thomas, 1975. "Individual welfare, majority voting, and the properties of a linear income tax," Journal of Public Economics, Elsevier, vol. 4(2), pages 163-185, February.
- Bourguignon, F. & Verdier, T., 1997.
"Oligarchy, Democracy, Inequality and Growth,"
DELTA Working Papers
97-10, DELTA (Ecole normale supérieure).
- Roberto Perotti, 1993. "Political Equilibrium, Income Distribution, and Growth," Review of Economic Studies, Oxford University Press, vol. 60(4), pages 755-776.
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