We study how the allocation of government expenditures between two major outlays -- education and pay-as-you-go social security -- affects income distribution in an economy with heterogeneous agents.

Independent central bankers and judges can both be more usefully viewed as examples of trustees than as agents. A trust is alegal insitution with rules set up by a settlor, administered by a trustee on behlaf of beneficiaries. Public trustees often are motivated more by Pride, Policy, Place and...