This paper develops a model of risky investment in education under disappointment aversion, modeled as loss aversion around one's endogenous expectation. The model shows that disappointment aversion reduces the optimal investment in education for lower ability people and increases it for higher...

Justification for policies to encourage investments in education, particularly for individuals at the lower end of the ability distribution, may be provided by behavioural economics. We present a prototypical model where individuals who are potentially loss averse around their expected outcome...

This paper develops a model of risky investment in education under disappointment aversion, modelled as loss aversion around one's endogenous expectation. The model shows that disappointment aversion reduces the optimal investment in education for lower ability people and increases it for higher...

Justification for policies to encourage investments in education, particularly for individuals at the lower end of the ability distribution, may be provided by behavioural economics. We present a prototypical model where individuals who are potentially loss averse around their expected outcome...

One theory for why there is a strong education gradient in health outcomes is that more educated individuals more quickly absorb new information about health technology. The MMR controversy in the UK provides a case where, for a brief period of time, some highly publicized research suggested...

One theory for why there is an education gradient in health outcomes is that more educated individuals more quickly absorb new health-related information. The measles, mumps, and rubella (MMR) controversy provides a case where, for a short period, some publicized research suggested that the...

One theory for why there is a strong education gradient in health outcomes is that more educated individuals more quickly absorb new information about health technology. The MMR controversy in the UK provides a case where, for a brief period of time, some highly publicized research suggested...

We study the impact of higher education financing on the academic aspirations of teenagers and of their parents. We exploit a reform which introduced a large increase in the maximum university tuition fees and a more redistributive student loan system, both of which varied across the UK's...

We study the impact of higher education financing on the academic aspirations of teenagers and of their parents. We exploit a reform which introduced a large increase in the maximum university tuition fees and a more redistributive student loan system, both of which varied across the UK's...

This paper considers whether labour market rigidities lead to more underground economic activities. This is suggested by aggregate cross-country data which show that underground economic activities are more strongly correlated with a commonly used index of employment protection than with...