The Design of Optimal Education Policies When Individuals Differ in Inherited Wealth and Ability

Darío Maldonado

Revista ESPE - Ensayos Sobre Política Económica, 2007, vol. 25, issue 55, No 4647, 84-108

Abstract: In this paper I consider the role of education poli-cies in redistribution of income when individuals differ in two aspects: ability and inherited wealth. I discuss the extent to which the rules that emerge in unidimensional settings apply also in the bidimen-sional setting considered in this paper. The main conclusion is that, subject to some qualifi cations, the same type of rules that determine optimal edu-cation policies when only ability heterogeneity is considered apply to the case where both parameters of heterogeneity are considered. The qualifi cations pertain to the implementation of the optimal alloca-tion of resources to education and not the way the optimal allocations fi rst- and second-best differ.

Keywords: optimal taxation; education; public pro-vision; multidimensional screening. (search for similar items in EconPapers)
JEL-codes: H21 H23 H52 I28 J31 (search for similar items in EconPapers)
Date: 2007
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https://doi.org/10.32468/Espe.5503

Related works:
Journal Article: The design of optimal education policies when individuals differ in inherited wealth and ability (2007)
Working Paper: The design of optimal education policies when individuals differ in inherited wealth and ability (2007)
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Persistent link: https://EconPapers.repec.org/RePEc:col:000107:004647

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