present-bias preference

In this question we consider the impact of selfcontrol problems on investment in human capital (e.g., schooling) decisions. [See Ben Porath?] Consider a presentbiased individual, characterized by time preference parameters 6, 6, fl, that is considering when (and whether) to enroll in postsecondary education. Returning to school requires an immediate effort cost, opportunity cost, and tuition cost captured by ~k 0, still from the perspective of the time-0 self. 3) From now on assume that 6 = , simplify the expressions in the points above accordingly. 4) Consider rst a timeconsistent individual ([3 = 3 = 1) and solve for the optimal timing of the schooling decision. 5) Consider now a fully naive presentbiased individual (,6