TY  - UNPD
A1  - Koeniger, Winfried
A1  - Prat, Julien
T1  - Human capital and optimal redistribution
T2  - Center for Financial Studies (Frankfurt am Main): CFS working paper series ; No. 497
N2  - We characterize optimal redistribution in a dynastic family model with human capital. We show how a government can improve the trade-off between equality and incentives by changing the amount of observable human capital. We provide an intuitive decomposition for the wedge between human-capital investment in the laissez faire and the social optimum. This wedge differs from the wedge for bequests because human capital carries risk: its returns depend on the non-diversi…able risk of children's ability. Thus, human capital investment is encouraged more than bequests in the social optimum if human capital is a bad hedge for consumption risk.
T3  - CFS working paper series - 497 
Y1  - 2014
UR  - http://publikationen.ub.uni-frankfurt.de/frontdoor/index/index/docId/35611
UR  - https://nbn-resolving.org/urn:nbn:de:hebis:30:3-356112
IS  - November 2014
PB  - Center for Financial Studies
CY  - Frankfurt, M.
ER  -