This paper develops a dynamic general equilibrium model of fertility, human capital accumulation, child labor and uncertain child survival focusing on the qualitative and quantitative effect of declining mortality on household decisions and economic development. Due to uncertainty about child...

In this paper we characterize quantitativelya the optimal mix of progressive income taxes and education subsidies in a model with endogeneous himan capital formation, borrowing constraints, income risk and incomplete financial markets. Progressive labor income taxes provide social insurance...