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Public Education and Democracy in a Simple Model of Persistent Inequality

  • Franciscos Koutentakis

    ()

    (University of Crete)

The paper introduces public education fi��nanced by linear taxation into a standard model of persistent inequality. It obtains the straightforward conclusion that agents with income above the average will prefer a positive tax rate. This implies a majority of agents supporting the introduction of public education suggesting that democracy is necessary and sufficient condition for redistribution.

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Paper provided by University of Crete, Department of Economics in its series Working Papers with number 1204.

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Date of creation: 18 Jul 2012
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Handle: RePEc:crt:wpaper:1204
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  1. Oded Galor, 2011. "Inequality, Human Capital Formation and the Process of Development," NBER Working Papers 17058, National Bureau of Economic Research, Inc.
  2. Dan Usher, 1976. "The Welfare Economics of the Socialization of Commodities," Working Papers 218, Queen's University, Department of Economics.
  3. Moav, Omer, 2002. "Income distribution and macroeconomics: the persistence of inequality in a convex technology framework," Economics Letters, Elsevier, vol. 75(2), pages 187-192, April.
  4. Galor, Oded & Zeira, Joseph, 1993. "Income Distribution and Macroeconomics," Review of Economic Studies, Wiley Blackwell, vol. 60(1), pages 35-52, January.
  5. 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.
  6. repec:cup:cbooks:9780521855266 is not listed on IDEAS
  7. Nakajima, Tetsuya & Nakamura, Hideki, 2009. "The price of education and inequality," Economics Letters, Elsevier, vol. 105(2), pages 183-185, November.
  8. Glomm, Gerhard & Ravikumar, B, 1992. "Public versus Private Investment in Human Capital Endogenous Growth and Income Inequality," Journal of Political Economy, University of Chicago Press, vol. 100(4), pages 818-34, August.
  9. Epple, Dennis & Romano, Richard E, 1996. "Public Provision of Private Goods," Journal of Political Economy, University of Chicago Press, vol. 104(1), pages 57-84, February.
  10. Meltzer, Allan H & Richard, Scott F, 1981. "A Rational Theory of the Size of Government," Journal of Political Economy, University of Chicago Press, vol. 89(5), pages 914-27, October.
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