Camacho, Carmen; Shen, I-ling - 2010
expansive income tax policy that is adopted to increase public education expenditure per pupil. It is shown that such a policy … may exacerbate income inequality in the long run if for the less skilled dynasties, the benefits of more public spending …-induced tax base erosion is not severe, an expansive income tax policy indeed enhances future human capital for all dynasties, and …