The majority of empirical papers in the literature on school quality finds no or only small effects of class size and other school quality measures on students' outcomes. This paper analyses the effect of achievement heterogeneity and therefore the effect of the composition rather than the pure...

This paper investigates the method of matching regarding two crucial implementation choices, the distance measure and the type of algorithm.We implement optimal full matching – a fully efficient algorithm – and present a framework for statistical inference. The implementation uses data from...

It is unclear whether the exceptionally highU.S. current account deficit can be sustained for a prolonged period. In this paper we approach the topic whether a gradual adjustment or a pronounced reduction of the deficit is likely to occur. We therefore characterize the dynamics of the current...