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Public Education and Social Security: A Political Economy Approach

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  • Tetsuo Ono

    (Graduate School of Economics, Osaka University)

Abstract

This paper develops an overlapping-generations model with altruism towards children. The paper characterizes a Markov perfect political equilibrium of voting over two policy issues, public education for the young and social security for the old. The model potentially generates two types of political equilibria, and one of them is selected by the government from the viewpoint of maximizing its objective. The paper shows that (i) longevity affects equilibrium selection and relevant policy choices; and (ii) private education as an alternative to public education as well as the concept of Markov perfect political equilibrium are the keys to generate the two types of equilibria.

Suggested Citation

  • Tetsuo Ono, 2013. "Public Education and Social Security: A Political Economy Approach," Discussion Papers in Economics and Business 13-06-Rev, Osaka University, Graduate School of Economics, revised Sep 2013.
    • Handle: RePEc:osk:wpaper:1306r
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    Cited by:

    1. Ono, Tetsuo & Uchida, Yuki, 2018. "Human capital, public debt, and economic growth: A political economy analysis," Journal of Macroeconomics, Elsevier, vol. 57(C), pages 1-14.
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    3. Bishnu, Monisankar & Wang, Min, 2017. "The political intergenerational welfare state," Journal of Economic Dynamics and Control, Elsevier, vol. 77(C), pages 93-110.
    4. Tetsuo Ono, 2014. "Economic Growth and the Politics of Intergenerational Redistribution," Discussion Papers in Economics and Business 14-17, Osaka University, Graduate School of Economics.
    5. Zhang, Muyang & Zhou, Guangsu & Fan, Gang, 2020. "Political Control and Economic Inequality: Evidence from Chinese Cities," China Economic Review, Elsevier, vol. 61(C).
    6. Cordelia Omodero, 2021. "Tax revenue collection or foreign borrowing: what fiscal tools enhance the educational development in Nigeria?," Journal of Tax Reform, Graduate School of Economics and Management, Ural Federal University, vol. 7(3), pages 231-243.
    7. Monisankar Bishnu & Min Wang, 2013. "The Political intergenerational welfare state: A Unified framework," Discussion Papers 13-08, Indian Statistical Institute, Delhi.
    8. Lianying Yao & Xiaoxiao Ma, 2022. "Has digital finance widened the income gap?," PLOS ONE, Public Library of Science, vol. 17(2), pages 1-20, February.
    9. Casamatta, G. & Batté, L., 2016. "The Political Economy of Population Aging," Handbook of the Economics of Population Aging, in: Piggott, John & Woodland, Alan (ed.), Handbook of the Economics of Population Aging, edition 1, volume 1, chapter 0, pages 381-444, Elsevier.

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    More about this item

    Keywords

    Public education; Social security; Intergenerational conflict;
    All these keywords.

    JEL classification:

    • H52 - Public Economics - - National Government Expenditures and Related Policies - - - Government Expenditures and Education
    • H55 - Public Economics - - National Government Expenditures and Related Policies - - - Social Security and Public Pensions
    • I22 - Health, Education, and Welfare - - Education - - - Educational Finance; Financial Aid

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