A model of intervention in childhood

This paper describes a model and resulting simulations to assess the appropriate age
structure of intervention in childhood on the theme: should we intervene early or late?
We use asset theory approaches to construct a general model of state investment
whose aim is to reduce inequality in human capital. We set out the key parameters of
such a model, clarifying the assumptions that must be made by state planners or
economists in assessing the relative value of targeted investment at different ages in
the presence of a range of elements of uncertainty. We simulate the model showing
how the age-investment schedule will vary under different assumptions. Early
investment is highly valued because of the likely decline with age in effectiveness but
the trade-offs are strongly moderated by other important assumptions around which
there is uncertainty or are choice variables of the state planner.