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Abstract: The main objective of this paper is to show that a family arrangement in which the elderly co-reside with the young determines that the elderly support the public education expenditure. Considering that this type of family arrangement is more common in Latin American countries than in the United States, our study is concentrated in Brazil. This study is based on a panel of 2054 Brazilian municipalities using data from the 1991 and 2000 censuses. [Copyright &y& Elsevier]