Wage inequality between education groups in the United States has increased substantially since the early 1980s. The relative number of college-educated workers has also increased dramatically in the postwar period. This paper presents a unified framework where the dynamics of both skill...

We study the evolution of health investment over the life-cycle by calibrating a model of endogenous health accumulation. The model is able to produce the decline in labor supply with age as well as the hump-shaped consumption profile. In both cases, health and health investment play a crucial...

This paper first documents several important business cycle properties of health expenditures across countries. We then develop a stochastic dynamic general equilibrium model with endogenous health accumulation. The model has three distinguished features: 1). Health enters into utility function;...

We develop a general equilibrium macroeconomic model with endogenous health accumulation, and use the model's equilibrium condition to estimate the elasticity of substitution between medical care and leisure time in maintaining health based on a cross-country panel dataset. Our econometric...

This paper studies the driving forces behind the dynamics of the skill premium and college enrollment rate in the postwar US economy. I develop an overlapping generations general equilibrium model with endogenous discrete schooling choice. The production technology features capital-skill...

We use China's large-scale reform of state-owned enterprises (SOEs) in the late 1990s as a natural experiment to identify and quantify the importance of precautionary saving for wealth accumulation. Before the reform, SOE workers enjoyed the same job security as government employees. Since the...

Empirical evidence suggests that both leisure time and medical care are important for maintaining health. We develop a general equilibrium macroeconomic model in which taxation is a key determinant of the composition of these two inputs in the endogenous accumulation of health capital. In our...

We study the pruning process developed by Abraham and Delmas (2012) on the discrete Galton–Watson sub-trees of the Lévy tree which are obtained by considering the minimal sub-tree connecting the root and leaves chosen uniformly at rate λ, see Duquesne and Le Gall (2002). The tree-valued...

Empirical evidence suggests that both leisure time and medical care are important for maintaining health. We develop a general equilibrium macroeconomic model in which taxation is a key determinant of the composition of these two inputs in the endogenous accumulation of health capital. In our...

We introduce a rapid grid search method in solving dynamic programming problems in economics. Compared to mainstream grid search methods, by using local information of the Bellman equation, this method can significantly increase the efficiency in solving dynamic programming problems by reducing...