The paper considers theoretical and empirical evidence on the impact of standards-based school reform. Our theoretical synthesis distinguishes between sorting and incentive effects of high standards, and spells out the potential tradeoffs and complementarities between enhancing efficiency and...

This article reexamines an old debate over the optimality of market allocations in a symmetric mean-variance world, with production nonconvexities, imperfectly correlated outputs, and free entry. We show that Walrasian equilibrium does not exist: that non-Walrasian equilibrium under price-taking...