This paper proposes that a public finance system can Pareto-improve a version of the economy in Ghatak and Jiang (2002). Our discussion relates to the controversial issue of wealth inequality in Japan. Its implications are important for consideration during administrative reform by the Koizumi...

This paper investigates which of publicly financed education or privately financed education is favorable for growth in an economy where development of new technology by specialists is the engine of growth and social rewards are bestowed upon growth enhancing activities. We show that when one...