Reduced inequality in human capital may reduce approriation from the rich. They may therefore favor policies such as income transfer and mandatory schooling leads to higher incomes for boththe rich and the poor, and increases the welfare of all. Moreover, it is the optimal policy for the rich,...

Consider a public project which produces a consumption good and which benefits ruture generations. Let a conventional cost-benefit analysis find that it gives higher benefits than projects it would dis-place in the private sector. Voters may nevertheless oppose the public project: the...

We consider a leader and a subordinate he appoints who engage in team production. The public observes the organization's performance, but is unable to determine the separate contributions of the leader and of the subordinate. The leader may therefore claim credit for the good work of his...