|
| |
| Robert Reed, Karl Boulware and Ejnidu Ume |
| |
| ''Human Capital Investment under Quasi-Geometric Discounting'' |
| ( 2016, Vol. 36 No.4 ) |
| |
| |
| Recent work by Laibson (1997) identifies that individuals are excessively impatient in the short-run, but wish to become more patient over time. It is often argued that such a time-inconsistency problem distorts individuals' savings decisions. The objective of this paper is to study human capital accumulation in the presence of a time-inconsistency problem. In doing so, we explain that many policies put into place to take advantage of the inter-personal benefits from human capital accumulation may also be important for resolving 'intra-personal' planning problems. Our results also shed light on the role of compulsory education.
|
| |
| |
| Keywords: Human Capital, Quasi-Geometric Discounting |
JEL: C6 - Mathematical Methods and Programming: General
E2 - Macroeconomics: Consumption, Saving, Production, Employment, and Investment: General (includes Measurement and Data) |
| |
| Manuscript Received : Sep 12 2016 | | Manuscript Accepted : Nov 09 2016 |
|
