I undertake a political economy exercise of a type described in John Rawls' A Theory of Justice; namely, one in which economic institutions are judged by how well they match the key principles in theories of distributive justice. My main contention is that such an exercise is integrally related...

We develop a novel framework to analyze the structural implications of the marriage market for household consumption. We define a revealed preference characterization of efficient household consumption when the marriage is stable. Stability means that the marriage matching is individually...

What shapes the optimal degree of progressivity of the tax and transfer system? On the one hand, a progressive tax system can counteract inequality in initial conditions and substitute for imperfect private insurance against idiosyncratic earnings risk. At the same time, progressivity reduces...

We examine the impact of housing wealth on labor supply decisions using data on exogenous local variation in house prices merged into household panel data for Britain. Our estimates are conditioned on variations in local labor demand and income expectations as these may co-determine housing...

This paper sets out revealed preference tests for different models of consumption behaviour over retirement that we applied to a Spanish consumption panel dataset. We reject the perfect foresight model both with separable preferences and allowing for preference change. The first order conditions...

We study the socio-economic gradient of child development on a representative sample of low- and middle-income children aged 6-42 months in Bogota, using the Bayley Scales of Infant Development, a high quality test based on direct observation of the child's abilities. We find a statistically...

The pensioner population a decade from now is likely to look different to today's population. There will not only be more pensioners but those retiring over the next few years will have experienced different economic conditions in their working lives, been subject to a different policy...

Education is often regarded as a route to social mobility. For this to be the case, however, the link between family background and adult outcomes must be broken (or at least reduced) once we take account of an individual's education history. This paper focuses on individuals who have completed...

There are large socio-economic gaps in higher education participation. But returns to education in the UK derive largely from the attainment of qualifications rather than years of study, and additionally vary by institution, subject and degree class for graduates. This paper provides new...

Is financial literacy a substitute or complement for financial advice? In this paper we analyze the decision by consumers to seek financial advice in the form of credit counseling concerning their credit and debt. Credit counseling is an important component of the consumer credit sector for...