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Essays on Macroeconomic Policies and Family Economics
 Tolstova, Vera ; Slobodyan, Sergey (advisor) ; Herrington, Christopher (referee) ; Kocharkov, Georgi (referee)
English In a real economy, decisions on investments in the human capital of children are made by families rather than by atomistic parents as is typically assumed in the literature. The first chapter of this dissertation incorporates family formation into an otherwise standard dynastic framework with human capital accumulation. The study finds that accounting for differences in taxation and education policies between the U.S. and 10 OECD countries is sufficient to replicate cross-country variations in the degree of assortative matching and its positive correlation with the intergenerational persistence of earnings. Positive assortative matching is crucial to a model's ability to generate realistic levels of the intergenerational earnings correlations observed in the data. In the second chapter, I develop a simple dynastic model in the style of Barro and Becker (1989), with endogenous fertility and human capital accumulation, to quantify the optimal progressivity of higher education subsidies. I find that the optimal policy is characterised by a higher degree of progressivity than current U.S. education subsidies. Additionally, the relations between the degree of progressivity of education policies and welfare/ population growth are hump-/ U- shaped...
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