We study how the allocation of government expenditures between two major outlays -- education and pay-as-you-go social security -- affects income distribution in an economy with heterogeneous agents.

We use computational experiments to study the impact of means-tested education vouchers on the level and distribution of educational expenditures.

In this paper we study whether majority voting equilibria exist when preferences over public policies are not single-peaked. The government levies a proportional income tax. Tax revennues is used to finance a uniform lump-sum transfer and public education. Individuals vote on the composition of...

We study how the relationship between economic growth and inequality depends upon the levels of funding of two of the largest government programs, public education and social security. We do this in the context of an overlapping generations economy with heterogeneous agents where the government...