This paper studies a model where student effort 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. It can show, for example, that an improvement in parental outside...

Does the growth of creative industries within a city yield both agglomeration effects (Marshallian externalities) as well as spillovers to the rest of the economy (Jacobian externalities, related to the novel combinations that can occur in cities with diversifted economic activities)? Most of...