EconPapers    
Economics at your fingertips  
 

Efficient investment in children

Jeremy Greenwood, S. Aiyagari and Ananth Seshadri ()

No 132, Discussion Paper / Institute for Empirical Macroeconomics from Federal Reserve Bank of Minneapolis

Abstract: Many would say that children are societys most precious resource. So, how should it invest in them? To gain insight into this question, a dynamic general equilibrium model is developed where children differ by ability. Parents invest time and money in their offspring, depending on their altruism. This allows their children to grow up as more productive adults. First, the efficient allocation for the framework is characterized. Next, this is compared with the case of incomplete financial markets. Then, the situation where childcare markets are also lacking is examined. Additionally, the effects of impure altruism are analyzed.

Keywords: Econometric; models (search for similar items in EconPapers)
Date: 1999
New Economics Papers: this item is included in nep-dge
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (3) Track citations by RSS feed

Downloads: (external link)
http://minneapolisfed.org/research/DP/DP132.pdf
http://minneapolisfed.org/research/common/pub_detail.cfm?pb_autonum_id=788 (application/pdf)
Our link check indicates that this URL is bad, the error code is: 404 Not Found (http://minneapolisfed.org/research/common/pub_detail.cfm?pb_autonum_id=788 [301 Moved Permanently]--> https://www.minneapolisfed.org/research/common/pub_detail.cfm?pb_autonum_id=788)

Related works:
Journal Article: Efficient Investment in Children (2002) Downloads
Working Paper: Efficient investment in children (2001) Downloads
Working Paper: Efficient Investment in Children (2001) Downloads
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:fip:fedmem:132

Ordering information: This working paper can be ordered from

Access Statistics for this paper

More papers in Discussion Paper / Institute for Empirical Macroeconomics from Federal Reserve Bank of Minneapolis Contact information at EDIRC.
Bibliographic data for series maintained by Janelle Ruswick ().

 
Page updated 2020-01-26
Handle: RePEc:fip:fedmem:132