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When the equilibrium of the economy depends on the coordinationof actions of a large number of agents the level of optimism can be-come a deciding factor. We propose an equilibrium selection processwhere the level of optimism is endogenously determined...
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This chapter explores the effects of education on nonmarket outcomes from both theoretical and empirical perspectives …-being reflected by their health and cognitive development. They are distinguished from the labor market outcomes of education in terms … of higher earnings and wage rates. The focus is on identifying causal effects of education and on mechanisms via which …
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could also improve their education outcomes. Given the importance of education for economic development, this link could be … the impact of child health on education outcomes, but there are formidable obstacles to obtaining credible estimates. Data … sources of bias when attempting to estimate relationships between child health and education. This Chapter provides an …
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