Dear all,
I was wondering if there is an example (or replication) of a dynastic model in the toolkit somewhere. What I have in mind is a setup where parents consume and save but also invest in the human capital of their children. Here the value function of the children enters in the maximization problem of the parents. So basically there is a fixed point but other than that you do backward iteration.
Thanks!
P.S. I saw a replication of Restuccia and Rogerson (2004) but I would be interested in something much more basic, like an example in the lifecycle or the OLG documents.