We consider a case where some of the parents have higher ability to raise children than others. First-best policy gives … misrepresent their true ability by investing less in their children, and having a lower number of children. The second-best policy … induces more able parents to have the first-best number of children, and to invest in each child at the first-best level. Less …

Given that young children are under the control of their parents, if the government has an interest in either the … of the word, the government’s agents. They are agents also in the sense of Principal-Agent theory if the parental action … gives rise to some new ones. -- optimal taxation ; optimal family allowances ; hidden ability to raise children ; hidden …

We examine the effects of differences in social capital on first and second best transfers to families with children … born, are random variables. The probability that a couple has children is conditional on the level of reproductive activity … includes two transfers, one conditional on number of births, the other on the children's earning ability. …

We examine the effects of differences in social capital on first and second best transfers to families with children … born, are random variables. The probability that a couple has children is conditional on the level of reproductive activity … includes two transfers, one conditional on number of births, the other on the children's earning ability …