Resumen de Financing public education when altruistic agents have retirement concerns

Daniel Montolio, Amedeo Piolatto

• Human capital and, therefore, education have an impact on the society�s future welfare. In this paper we study the connection between the voters� support to public education and the retirement concerns. We show that voters anticipate the positive effect of education on future pensions. The support for a publicly financed education system increases, the more redistributive the pension system is, and this is true also amongst citizens preferring a private school. We also show that the �ends against the middle� equilibrium can occur even when the voters� preferred tax rate is decreasing in income.