Canonical economic agents act so as to maximize a single, representative, utility function. However, there is accumulating evidence that heterogeneity in thought processes may be an important determinant of individual behavior. This paper …
Existing economic theory does not adequately explain the very low educational investment of disadvantaged children in advanced economies. We propose a new model of educational investment that endogenously separates disadvantaged children into a …
Individuals who under-invest in education experience negative outcomes along most measurable dimensions. Although such under-investment is common, it is not adequately explained by existing economic theory. We disaggregate the canonical educational …