Who Should Pay for Education? Insights from a Dynastic Model
I had the opportunity to present my research at IMD Days 2025, where I shared a poster on the optimal design of policies supporting human capital investment.
The project addresses a fundamental question: how should education—given its role as a merit good and its exposure to externalities and information frictions—be financed in a way that is both efficient and socially acceptable?
Using a dynastic model with heterogeneous families, I analyze how different policy instruments, such as education subsidies and income-contingent loans, affect incentives to invest in human capital. The results highlight the importance of family background and inherited resources in shaping both individual decisions and optimal policy design.
IMD Days provided a great setting for focused discussions on the micro-foundations of policy design. I am grateful for the insightful feedback and inspiring conversations.