Income-based affirmative action in college admissions

We study whether college admissions should implement quotas for lower-income applicants. We develop an overlapping-generations model and calibrate it to data from Brazil, where such a policy is widely implemented. In our model, parents choose how much to invest in their child’s education, thereby increasing both human capital and likelihood of college admission. We find that, in the long run, the optimal income-based affirmative action increases welfare and aggregate output. It improves the pool of admitted students but distorts pre-college educational investments. The welfare-maximizing policy benefits lower- to middle-income applicants with income-based quotas, while higher-income applicants face fiercer competition in college admissions. The optimal policy reduces intergenerational persistence of earnings by 5.7% and makes nearly 80% of households better off

Efeitos recíprocos entre finanças e inovação

The relationship between finance and innovation is key for economic development. Both classical economists and economic historians highlight the importance of these connections for successful capitalist economies. This paper investigates the relationship between finance and innovation in a cross-country comparison. This comparison uses three sets of data for 187 countries (science and technology, banks and credit and GDP per capita). For 86 countries that produce patents and papers and have banks and stock-exchanges, these data show a strong correlation among these three dimensions. Clustering techniques divide these 86 countries in three subsets, suggesting reciprocal effects between finance and innovation.finance, inovation, co-evolution, clustering techniques

Income-Based Affirmative Action in College Admissions Acció afirmativa basada en la renda en l'admissió a la universitat

We study whether college admissions should implement quotas for lower-income applicants. We develop an overlapping-generation model and calibrate it to data from Brazil, where such a policy is widely implemented. In our model, parents choose how much to invest in their child's education, thereby increasing both human capital and likelihood of college admission. We find that, in the long run, the optimal income-based affirmative action increases welfare and aggregate output. It improves the pool of admitted students, but distorts pre-college educational investments. The welfare-maximising policy benefits lower- to middle-income applicants with income-based quotas, while higher-income applicants face fiercer competition in college admissions. The optimal policy reduces intergenerational persistence of earnings by 5.7% and makes nearly 80% of households better off

Efeitos recíprocos entre finanças e inovação

26 p. :il.Este artigo investiga as relações entre as dimensões monetário-financeira e industrial-inovativa na atualidade, a partir de uma comparação internacional. Na medida em que esse exercício utiliza dados para 187 países, é possível uma avaliação preliminar sobre como estágios de desenvolvimento econômico são influenciados por essa articulação. Para o conjunto de 86 países que possuem os dados relevantes para captar essas três dimensões, busca-se identificar a correlação entre as variáveis e investigar a existência de grupos entre as duas dimensões. A aplicação de uma técnica de clustering divide esses países em três grupos distintos.________________________________________________________________________________ABSTRACT - The relationship between finance and innovation is key for economic development. Both classical economists and economic historians highlight the importance of these connections for successful capitalist economies. This paper investigates the relationship between finance and innovation in a cross-country comparison. This comparison uses three sets of data for 187 countries (science and technology, banks and credit and GDP per capita). For 86 countries that produce patents and papers and have banks and stock-exchanges, these data show a strong correlation among these three dimensions. Clustering techniques divide these 86 countries in three subsets, suggesting reciprocal effects between finance and innovation