more income elastic than public goods, as we document in the paper, an increase in income endogenously leads to smaller … number of children. …

percentage point increase in house prices, when children are 17-years-old, results in roughly 0.8 percent higher annual income … for the children of homeowners, and 1.2 percent lower annual income for the children of renters. Additional analysis shows … that the children who benefit the most from rising house prices are those whose parents are liquidity constrained …

This paper presents a dynamic model of the decision to pursue a college education in which students face uncertainty … about their future income stream after graduation due to unobserved heterogeneity in their innate scholastic ability. After … students matriculate and start taking exams, they reevaluate their expectations about succeeding in college and may find it …