We consider an OLG economy with endogenous investment in human capital. Heterogeneity in individual human capital levels is generated by random innate ability. The production of human capital depends on each individual’s investment in education. This investment decision is taken only after...

This paper examines the effects of Hicks-neutral, Harrod-neutral, and Solow-neutral technological improvements on the distribution of income in an overlapping generations economy with endogenous labor supply and a bequest motive. Income inequality in this model is generated by a stochastic...

We consider an Overlapping-generations economy where the aggregative production process uses physical capital and human capital The human capital level of each individual is determined by the direct investment in education and some random ability The parents' investment in the education of their...