This paper identifies the main inputs considered in the model of skill formation of Cunha and Heckman (2007) and the impact of household wealth on these inputs is estimated. For this, a socioeconomic index is constructed using the Principal Component Analysis (PCA) method. The results from...

This paper identifies the main inputs considered in the model of skill formation of Cunha and Heckman (2007) and the impact of household wealth on these inputs is estimated. For this, a socioeconomic index is constructed using the Principal Component Analysis (PCA) method. The results from...

The paper analyzes the intermediation role of government under the assumption that it has an advantage over the private sector in collecting uncollateralized loan payments. It isshown that a government loan program may improve the welfare of all generations (including the current old generation)...

This paper reviews the recent literature on the production of skills of young persons. The literature features the multiplicity of skills that explain success in a variety of life outcomes. Noncognitive skills play a fundamental role in successful lives. The dynamics of skill formation reveal...

This paper reviews the recent literature on the production of skills of young persons. The literature features the multiplicity of skills that explain success in a variety of life outcomes. Noncognitive skills play a fundamental role in successful lives. The dynamics of skill formation reveal...

Many would say that children are society's most precious resource. So, how should we invest in them? To gain insight into this question, a dynamic general equilibrium model is developed where children differ by ability. Parents invest time and money in their offspring, depending on their...