There is a long-standing literature that recognizes that an efficient solution in correcting a consumption externality is through applying subsidies and taxes that line up private incentives with social ones. An equally long-standing literature tackles the appropriate methods of generating the...

Whether siblings of specific birth order perform differently has been a longstanding open empirical question. We use the family tree structure of the PSID to examine two claims found in the literature: whether being early in the birth order implies a distinct educational advantage, and whether...

Traditional economic analysis has proposed well known remedies to deal with consumption externalities and inefficient technological change in isolation, but lacks a general framework for addressing them jointly. We argue that the joint determination of Ramp;D and consumption externalities is...

In a rational choice model of parole release, a color-blind parole board seeking to minimize violations would release all prisoners below a certain risk threshold. To test this prediction, we extend the outcome-test methodology used in assessing discrimination in police searches. We overcome the...