Del Boca, Daniela; Flinn, Christopher J.; Verriest, Ewout; … - 2023
We construct a dynamic model of child development where forward-looking parents and children jointly take actions to … increase the child's cognitive and non-cognitive skills within a Markov Perfect Equilibrium framework. In addition to time and … money investments in their child, parents also choose whether to use explicit incentives to increase the child's self …