An intergenerational model of wealth distribution is the basis for an analysis of educational policy: specifically grants, loans and subsidies. Parents endow their children with education and/or cash bequest; the child's earned income and the cash bequest may be taxed. For given tax schedules...

We address the following question: how does a higher education funding system influence the trade-off that universities make between research and teaching? We do so by constructing a model that allows universities to choose actively the quality of their teaching and research when faced with...