Available evidence suggests high intergenerational correlation of economic status, and persistent disparities in health status between the rich and the poor. This paper proposes a novel mechanism linking the two. Health human capital is introduced into a two-period overlapping generations model....

Using a model of O-ring production function, the paper demonstrates how certain communities can get caught in a low-literacy trap in which each individual finds it not worthwhile investing in higher skills because others are not high-skilled. The model sheds light on educational policy. It is...

Education is an important component of economic activity, although investment in education is only one of the many forms of investment in human capital. The idea behind this is that investment in human beings, like investment in tangible forms of capital such as buildings and industrial...