This paper studies the effects of progressive income taxes and education finance in a dynamic heterogeneous agent … theoretically and quantitatively, in a model which yields complete analytical solutions. Progressive education finance always leads …

systems of education finance or health insurance. The underlying mechanism operates as follows. With imperfect credit and … public education. Aggregate efficiency gains imply very different political economy consequences from those of standard … models: the extent of political support for such redistributive policies decreases with the degree of inequality, at least …

inequality in education and income more persistent across generations. Whether or not the same is true of inequality in total …, which provides an integrated framework for analyzing the local determinants of inequality and growth. Five main conclusions … emerge. First, minor differences in education technologies, preferences, or wealth can lead to a high degree of …

, while inequality tends to rise monotonically. Bonus caps and income taxes can help restore balance in agents' incentives and …