Mendolicchio, Concetta; Paolini, Dimitri; Pietra, Tito - In: Journal of Mathematical Economics 48 (2012) 6, pp. 367-385
We consider a random matching model where heterogeneous agents choose optimally to invest time and real resources in education. Generically, there is a steady state equilibrium where some agents, but not all of them, invest. Regular steady state equilibria are constrained inefficient in a...