Albornoz-Crespo, Facundo; Berlinski, Samuel; Cabrales, … - C.E.P.R. Discussion Papers - 2010
We study a model where student eort and talent interact with parental and teachers' investments, as well as with school system resources. The model is rich, yet sufficiently stylized to provide novel implications. We can show, for example, that an improvement in parental outside options will...