type="main" xml:id="ecca12060-abs-0001" <p>Much literature on political behaviour treats politicians as motivated by re-election, choosing actions to signal their types to voters. We identify a novel implication of incumbent signalling. Because incumbents only care about clearing a re-election...</p>

This paper presents a model of inequality, income determination and fertility, that is consistent with aggregated stylized facts and individual survey data on fertility and income. It shows that indivisibilities in human capital investments limit the possibility of trade-off between the quality...