Using a household production model of educational choices, we characterise a free market situation in which some agents (high wagers) educate their children full-time and spend a sizable amount of resources on them, while others (low wagers) educate them only partially. The free-market...

Using a household production model of educational choices, we characterise a free market situation in which some agents (high wagers) educate their children full-time and spend a sizable amount of resources on them, while others (low wagers) educate them only partially. The free-market...

Using a household production model of educational choices, we characterise a free market situation in which some agents (high wagers) educate their children full-time and spend a sizable amount of resources on them, while others (low wagers) educate them only partially. The free-market...

One theory for why there is a strong education gradient in health outcomes is that more educated individuals more quickly absorb new information about health technology. The MMR controversy in the UK provides a case where, for a brief period of time, some highly publicized research suggested...

This paper uses a particular school exit rule previously in effect in England and Wales that allowed students born within the first five months of the academic year to leave school one term earlier than those born later in the year. Focusing on women, we show that those who were required to stay...

Justification for policies to encourage investments in education, particularly for individuals at the lower end of the ability distribution, may be provided by behavioural economics. We present a prototypical model where individuals who are potentially loss averse around their expected outcome...

This paper develops a model of risky investment in education under disappointment aversion, modelled as loss aversion around one's endogenous expectation. The model shows that disappointment aversion reduces the optimal investment in education for lower ability people and increases it for higher...

Justification for policies to encourage investments in education, particularly for individuals at the lower end of the ability distribution, may be provided by behavioural economics. We present a prototypical model where individuals who are potentially loss averse around their expected outcome...

One theory for why there is an education gradient in health outcomes is that more educated individuals more quickly absorb new health-related information. The measles, mumps, and rubella (MMR) controversy provides a case where, for a short period, some publicized research suggested that the...

This paper considers how optimal education and tax policy depends on the risk properties of human capital. It is demonstrated that a key feature of human capital investments is whether they increase or decrease wage risk. In a benchmark model it is shown that this feature alone determines...