Most developed countries have family policies, but little is known about their macroeconomic consequences. This paper develops a heterogeneous agent overlapping generations framework that integrates trade-offs between the number of children (quantity) and investment per child (quality), a rich...

Government subsidies to higher education have recently become a hot button political issue. But what if the federal government doesn't actually subsidize higher education, but rather, taxes it? This article gauges efficient investment levels based on marginal rates of return relative to other...

This paper analyzes the welfare effects of the Italian social security system in an economy with uncertainty on wages, financial market returns and life expectancy. The introduction of a pension system reproducing the Italian statutory scheme turns out to decrease ex-ante individual welfare,...

The theoretical literature presumes generational risk is large enough to merit study and that such risk can be meaningfully shared via appropriate government policy. This paper questions these propositions. It develops an 80-period OLG model to directly measure generational risk and the extent...

The theoretical literature presumes generational risk is large enough to merit study and that such risk can be meaningfully shared via appropriate government policies. This paper assesses these propositions. It develops a computational technique to overcome the curse of dimensionality and...

Objective – The purpose of this paper is to develop the optimal economic and social model for the modern stage and analyze the Social Progress Index in Georgia. The research is based on the paradigm that “what we analyze, this determines the decisions we make”. Consequently, emphasis is...

We quantify the importance of idiosyncratic health risk in a calibrated general-equilibrium model ofSocial Security. We construct an overlapping-generations model with rational-expectations households,idiosyncratic labor income and health risk, profit-maximizing firms, incomplete insurance...