This paper studies human capital investment in a spatial setting with interpersonal complementarities. A mixture of local and global social interactions affects the cost of acquiring education, and the return to human capital is determined endogenously in the market. We study how spatially...

Was hat Hamlet falsch gemacht? In diesem Buch lernen Sie Instrumente kennen, mit denen Sie dieser Frage systematisch nachgehen können – die Ihnen helfen, Entscheidungssituationen zu durchdenken, die sich durch Konflikte und Koordinationsprobleme auszeichnen. Mit Hilfe spieltheoretischer...

Education decisions determine a great part of future income. This paper argues that if education is financed by parents' current income a lump-sum tax reduces inequality if all parents have strict investment incentives. However, if some parents are indifferent there is a possible decrease in the...