We study 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. We can show, for example, that an improvement in parental outside options will...

This paper focuses on young adults living with their parents in the U.S. and studies the role of peers. Using data from the National Longitudinal Study of Adolescent Health (Add Health)we analize the influence of high school friends on the coresidence of young adults with their parents. We...

This paper studies peer group effects on marital decisions. We use data from Waves I and III of the National Longitudinal Study of Adolescent Health (Add Health). This database contains detailed information on adolescents’ high school friends as well as their marital behavior later in life. We...