In the standard neoclassical model with a representative agent, a benevolent planner who can commit to future policies will, if feasible, levy a single confiscatory tax on capital in the initial period and commit never to set positive taxes thereafter. We show that this policy, which allows for...

The primary objective of this paper is to develop a political economy of public funding of education that accounts for the large disparities observed across countries in the share of GNP allocated to public education. In a general equilibrium overlapping generations model in which parents care...