We provide a theory of the interaction between intergenerational living arrangements and economic development. We show that, when technical progress is fast enough, the economy experiences a shift from stagnation to growth, there is a transition from coresidence to non-coresidence, and the...

We characterize the optimal tax policy and quality of day care services in an OLG model in which child care arrangements chosen by parents of different skill types affect the probability that children become high-skilled adults in a type-specific way. With respect to previous contributions,...

In models with exogenous labor supply, a reallocation of funds from a wage-related pension to a basic pension affects inequality through changes in the pension paid, redistributing resources from the rich to the poor. We show that in a model with endogenous labor supply, another effect is...

This paper studies the effects of labour income taxation on growth in an OLG model where both formal schooling and child care enter the human capital production function as complements. We compare them with the effects obtained in a model where only formal schooling matters for skill formation....

The interactions between mortality reductions and income growth are studied, with a special attention at their relationship prior to the Industrial Revolution, when income per head was stagnant. The choice of individual medical spending is modelled, giving a rationale for individual health...