With a limited budget and resources, governments must decide how to allocate funds across a variety of factors which benefit society such as education, crime deterrence, and public safety. Each increase in spending on one area comes with the knowledge that this money cannot be spent on social...

Amine Ouazad looks at the impact of race on pupils' grades in US elementary schools

What is the impact of a pupil's perceptions of how their teachers will treat them on their motivation, efforts and educational achievements? To explore this question, Amine Ouazad and Lionel Page have conducted an experiment in which school children could use pocket money to place small bets on...

How do credit standards on the mortgage market affect neighbourhood choice and the resulting level of urban segregation? To answer this question, we first develop a model of neighbourhood choice with credit constraints. The model shows that a relaxation of credit standards can either increase or...