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| Tetsuo Ono and Ryo Arawatari |
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| ''Dynamic political economy of redistribution policy: the role of education costs'' |
| ( 2008, Vol. 4 No.13 ) |
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| This paper focuses on how education costs affect the political determination of redistribution policy via individual decision making on education. For cases of high costs, there are multiple equilibria: the poor-majority equilibrium featured by the minority of highly educated individuals and a high level of redistribution, and the rich-majority equilibrium featured by the majority of highly educated individuals and a low level of redistribution. For cases of low costs, there is a unique rich-majority equilibrium featured by the majority of highly educated individuals and a high level of redistribution. |
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| Keywords: |
JEL: D7 - Analysis of Collective Decision-Making: General
H5 - National Government Expenditures and Related Policies National Government Expenditures and Related Policies: General |
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| Manuscript Received : May 26 2008 | | Manuscript Accepted : May 29 2008 |
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