externalities via the interest rate. Conditional on differences in the processes determining household earnings for distinct groups … in the population, these savings externalities may contribute to inequality. Working with an open economy heterogenous … earnings processes of British households with university and non-university educated heads entail savings externalities that …

In this paper, we quantitatively assess the welfare implications of alternative public education spending rules. To … this end, we employ a dynamic stochastic general equilibrium model in which human capital externalities and public … education expenditures, financed by distorting taxes, enhance the productivity of private education choices. We allow public …