Jellal, Mohamed (2009): A Theory of Educational Inequality Family and Agency Costs.
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In this paper, we examine the consequences of imperfect information on the pattern of transfers from parents to children. Drawing on the theory of mechanism design, we consider a model of family contract with two levels of effort. We prove that equal transfers among children are expected under perfect information, while the second-best contract implies risksharing between the two generations, so that poor families experience higher agency costs..
|Item Type:||MPRA Paper|
|Original Title:||A Theory of Educational Inequality Family and Agency Costs|
|Keywords:||Education; Asymmetric Information; Family Financial Incentives; Inequality|
|Subjects:||D - Microeconomics > D6 - Welfare Economics > D63 - Equity, Justice, Inequality, and Other Normative Criteria and Measurement
J - Labor and Demographic Economics > J1 - Demographic Economics
D - Microeconomics > D8 - Information, Knowledge, and Uncertainty > D82 - Asymmetric and Private Information; Mechanism Design
A - General Economics and Teaching > A2 - Economics Education and Teaching of Economics
D - Microeconomics > D1 - Household Behavior and Family Economics
|Depositing User:||Mohamed Jellal|
|Date Deposited:||22. Sep 2009 10:28|
|Last Modified:||19. Feb 2013 00:04|
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