Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/168073
Authors: 
Koeniger, Winfried
Prat, Julien
Year of Publication: 
2017
Series/Report no.: 
Beiträge zur Jahrestagung des Vereins für Socialpolitik 2017: Alternative Geld- und Finanzarchitekturen - Session: Labor Markets B07-V1
Abstract: 
We characterize optimal redistribution in a dynastic economy with observable human capital and hidden ability. We compute the optimal allocation and show how it can be implemented with student loans or means-tested grants. The numerical results reveal that human capital investment should decline in parental income because parents with high income bequeath more and this lowers the labor supply of their children through a wealth effect.
JEL: 
E24
H21
I22
J24
Document Type: 
Conference Paper

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