Education Policy and Intergenerational Transfers in Equilibrium
构建世代交叠生命周期模型，研究大学资助政策对教育、劳动供给和储蓄的均衡影响，发现政府资助会显著挤占家长转移，现行联邦援助体系能提升长期福利6%。
We examine the equilibrium effects of college financial aid policies building an overlapping-generations life cycle model with education, labor supply, and saving decisions. Cognitive and noncognitive skills of children depend on parental education and skills and affect education and labor market outcomes. Education is funded by parental transfers that supplement grants, loans, and student labor supply. Crowding out of parental transfers by government programs is sizable and cannot be ignored. The current system of federal aid improves long-run welfare by 6 percent. More generous ability-tested grants would increase welfare and dominate both an expansion of student loans and a labor tax cut.