A quality versus quantity theory of fertility is proposed that predicts that more able parents chose to produce fewer children because they wish to invest more in their children's education. Using Mincer residuals to measure the unobserved ability of parents, data for Israel are used to show...

We present a simple reproducible methodology for constructing regional capital stock data, which we apply to Israel. We find that capital deepening has been sigma-convergent since 1985. This process is "inverted" since capital stocks and capital-labor ratios in the richer center have been...