their classmates do worse. The theory presented below reconciles all of these facts by recognizing that classroom teaching … ranges away from equilibrium levels will adversely affect educational output. The theory argues for a particular non … by lowering class size. The theory provides a measurable and operational way to define school quality that can be tested …

We develop a q theory of investment with endogenous leverage, payout, hedging, and risk-taking dynamics. The key … seeks to preserve its financial flexibility by prudently managing its leverage and investment. Paradoxically, it is the high …

alter the standard real options results, with the financial flexibility conferred by internal funds acting as a complement …, and at times as a substitute, to the real flexibility given by the optimal timing of investment. We show that: 1) the … be convex in liquidity) due to the interaction between financial and real (growth/abandonment) flexibility; 3) with …

This paper develops a new theory of international economics by introducing Heckscher-Ohlin features of intra … account towards its long-run equilibrium. We present empirical evidence consistent with the theory …