A model of education where the distribution of abilities is the source of heterogeneity is investigated. Ability is a key determinant of human capital accumulated when young, which in turn determines income and its distribution. The assumption of heterogeneous abilities leads to steady-state...

We construct a model of the determination of public funding of education through majority voting. Households have the option of privately supplementing public education. Alternatively, they can opt out of public education completely and choose private education. We find that in general the...

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 revenue is used to finance a uniform lump-sum transfer and public education. Individuals vote on the composition of...