This paper examines the relative effectiveness of publicly provided 'white collar' professional (university) education versus 'blue collar' vocational training in achieving the government's redistributive goals. Although professional education directly benefits high-skill high-income workers and...

It has been shown that an otherwise standard one-sector real business cycle model may exhibit indeterminacy and sunspots under a balanced-budget rule that consists of fixed and "wasteful" government spending and proportional income taxation. However, the economy always displays saddle-path...