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.

This paper investigates the trade-off between growth and distribution in open economies. In closed economies redistribution seems to reduce growth. I show that in open economies tax competition leads redistributing (left-wing) governments to mimic 'right-wing' policies if capital mobility is...

This paper makes a theoretical argument that growth in developing countries is likely to worsen the income distribution in developed countries and lead to a protectionist response that undermines the incentives for developing country growth. The model for this purpose is the two-cone version of...

In an infinite-horizon, endogenous growth model a capital income cum investment subsidy tax is considered to investigate if distribution of income towards the non-accumulated factor of production (labour) retards growth and if capital income taxes are bad instruments to finance investment...

In this paper we investigate an OLG model with imperfect altruism. We focus on the impact of three taxes: labor income tax, saving income tax and inheritance tax on labour supply and welfare distributions and on macroeconomic variables.