Local governments have borrowed largely from the banking system to finance their deficits instead of responding to the rigors of bond markets. This paper analizes how sub-national governments optimally reallocate the provision of public goods and decide on borrowing, in a model where the banking...

This exercise simulates routine list-testing decisions made by direct marketers. It presents students with 10 lists of 50,000 names each and a budget allowing them to mail to only half the available names. To discourage complicated sequential testing plans, the students are required to write out...