We use an overlapping generations model of human capital accumulation to study the impact of the AIDS crises on growth. In our model, the AIDS crisis lowers life expectancy and thus the incentive to save and accumulate physical capital. Moreover, the AIDS crisis lowers the returns to human...

We study a model of human capital driven growth, where the parent's human capital serves as a productive input in the child's human capital production only when that of the former exceeds a minimum level required to intellectually contribute to the child's learning. Private and public...

We study how the allocation of government expenditures between two major outlays - education and pay-as-you-go social security - affects human capital distribution in an economy with heterogeneous agents. We consider an overlapping generations economy where the government maintains both...

In most countries, the government is the main provider of education services. Even when a private education sector exists, it is often subsidized. Given the substantial involvement of governments in the education sector and the importance of skill acquisition for individual and national welfare,...