Income distribution, communities, and the quality of public education

Raquel Fernandez, Richard Rogerson

    Research output: Contribution to journalArticlepeer-review

    Abstract

    This paper develops a multicommunity model and analyzes policies that affect spending on public education and its distribution across communities. We find that policies that on net increase the fraction of the (relatively) wealthiest residents in the poorest community are welfare enhancing; policies that decrease this fraction can make all worse off. Appropriately financed policies to (i) redistribute income toward the poorest, (ii) increase spending on education in the poorest community, and (iii) make the poorest community more attractive to relatively wealthier individuals, produce chain reactions in which the quality of education increases and tax rates fall in all communities.

    Original languageEnglish (US)
    Pages (from-to)134-164
    Number of pages31
    JournalQuarterly Journal of Economics
    Volume111
    Issue number1
    DOIs
    StatePublished - Feb 1996

    ASJC Scopus subject areas

    • Economics and Econometrics

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