We study the effect of capital controls on the level of investment in human capital and the resulting growth path of an economy. The economy consists of two groups of agents based on the ownership of factors of production. One type of agents - called workers - own human capital and bequeath education to their offsprings. The other group of agents - called capitalists - own and bequeath physical capital. ...
Even though the share of workers retiring prematurely is growing, the average age of the labor force is rising because the younger age groups are contracting and the length of time they spend in education is increasing. And yet the German higher education system is relatively unproductive. While the propensity to study at the college level has increased, for demographic reasons the number of German ...
