Intergenerational human capital evolution, local public good preferences, and stratification

Chen, Been-Lon; Peng, Shin‐Kun; Wang, Ping

doi:10.1016/j.jedc.2008.06.011

Cited by 7 publications

(6 citation statements)

References 14 publications

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“…See the recent paper byChen et al (2009) for a similar application of this concept. 12 A threshold effect with similar characteristics in the implementation of cleaner technologies has been previously derived byTsur and Zemel (2011).…”

mentioning

confidence: 99%

Endogenous longevity and the joint dynamics of pollution and capital accumulation

Varvarigos¹

2013

Envir. Dev. Econ.

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The current paper offers a new explanation of the emergence of multiple equilibria, for which the high (low) income equilibrium is associated with high (low) environmental quality. This new explanation rests on endogenous technological choice in the presence of emission taxes -an idea whose foundations find strong support from existing empirical evidence. Thus, the interactions between environmental policy and technology choice, within a framework that accounts for the health effects of pollution, may suggest a possible mechanism behind some of the observed differences in income, life expectancy and environmental quality among countries.

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confidence: 99%

Endogenous longevity and the joint dynamics of pollution and capital accumulation

Varvarigos¹

2013

Envir. Dev. Econ.

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“…That is, the human capital stock of the next generation residing in city depends on parental human capital ( h i ( a )), the parents’ time devoted to a child’s education (1− v i ), and the local aggregate human capital in city i where parents reside ( H i ). Of particular note, the important role played by local human capital externalities in intergenerational human capital transmissions has been emphasized by Benabou (1996a) and Chen, Peng, and Wang (2009).…”

Section: The Modelmentioning

confidence: 99%

“…The leading economic factors believed to be responsible for the widening economic stratification outcome are: (i) heterogeneity in ability, skills, or human capital (cf. Benabou 1996a, Nechyba 2003, Chen, Peng, and Wang 2009, Kempf and Moizeau 2009, Berliant and Kung 2010), (ii) heterogeneity in nonhuman wealth (cf. Benabou 1996a, Nechyba 1997), (iii) heterogeneity in an individual’s accessibility to capital markets (cf.…”

Section: Introductionmentioning

confidence: 99%

Locational Stratification by Environment

Chen

Huang²,

Wang

2012

J Public Economic Theory

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This paper develops an equilibrium sorting model wherein perfectly mobile agents decide their optimal residential locations, either in a clean city or in a dirty city where production takes place. While residents in a dirty city suffer a higher level of pollution, they incur less commuting cost when going to work. When workers of different abilities choose different locations in which to reside, a segregated spatial configuration emerges, where those residing in a clean city have higher working time, human capital, and income than those in the dirty city. Analytic comparative-static and numerical welfare analyses are performed.

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“…On the other hand, while the land tax Nash equilibrium under decentralization yields positive provision, intergenerational good is underprovided relative to the e¢cient level unless the 2 It is also worth calling the reader's attention to the literature of dynamic Tiebout models without DLPG or capitalization. See especially Kotliko¤ and Ra¤elhueschen (1991), Glomm and Laguno¤ (1999), Benabou (1996), and Brueckner (1997), and more recently Chen, Peng and Wang (2009) and Epple, Romano and Sieg (2012). Schultz and Sjöström (2001) treat a two period, two jurisdiction model with public debt and free mobility.…”

Section: Introductionmentioning

confidence: 99%

Capitalization, decentralization, and intergenerational spillovers in a Tiebout economy with a durable public good

2017

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We consider an overlapping generations model with a Durable Local Public Good (DLPG). We establish a Tiebout Theorem (equilibrium exists and is first best) as well as a Second Welfare Theorem in this dynamic DLPG economy. We de...ne conditions under which local provision of durable public goods results in the full internalization of the intergenerational spillovers that durability entails. In contrast, when durable public goods are provided by the national government, internalization does not take place and underprovision of public goods results. This sets up an institutional tradeoff between national and local provision of public goods that balances the relative strength of intergenerational and interjurisdictional spillovers.

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Intergenerational human capital evolution, local public good preferences, and stratification

Cited by 7 publications

References 14 publications

Endogenous longevity and the joint dynamics of pollution and capital accumulation

Endogenous longevity and the joint dynamics of pollution and capital accumulation

Locational Stratification by Environment

Capitalization, decentralization, and intergenerational spillovers in a Tiebout economy with a durable public good

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