Using a simple two-sector life cycle economy with housing services and bequests, we show that a rising labor efficiency … the rising trends in wealth-to-income ratios, housing wealth, and wealth inequality, that have been documented in most … advanced countries at least since the '70s. This mechanism (which we label housing cost disease) has adverse effects on social …

spending that prioritizes education. In contrast, wealthy countries are more likely to benefit from health-related spending … redistributive spending that prioritises schooling. On the other hand, rich countries are more likely to benefit from health …