The paper examines the effect of heterogeneity in individual human capital formation on cross-country income inequality. It considers a two-country model of overlapping generation heterogeneous economies with the following features: (1) individuals are heterogeneous with respect to inborn...

This paper studies an economy where parents can choose between public or private schools and can vote on taxes used to fund public schools. The model is calibrated to US data and studied using simulations. A bimodal income distribution emerges where public education students converge to a...

The paper analyzes the joint evolution of accumulation and distribution of human capital in an OLG framework. Dynamics arise from the interplay between human capital distribution and individual variables--inherited human capital and inborn ability. Such interaction drives individual investment...