Since human capital is a major driver of growth, the conventional wisdom suggests that the government should direct more resources to education. However, surprisingly the cross country data show little positive correlation between growth and public spending on education. In fact, the pattern is rather puzzling. Public spending on education tends to depress schooling return. The relationship bet...

This paper studies the causal mechanisms behind poverty traps, building on evidence of nonlinear wealth dynamics among a poor pastoralist population, the Boran from southern Ethiopia. In particular, it explores the roles of adverse weather shocks and individual ability to cope with such shocks in conditioning wealth dynamics. Using original data, we establish pastoralists’ expectations of herd ...

We develop a two sector general equilibrium model with capital accumulation and convex adjustment costs. We use the model to study capital asset pricing and reallocation, as well as optimal consumption and investment decisions. With two sectors, the consumer balances diversification against the potential productivity and efficiency gains of investing more heavily in one sector. The general fram...

It's not surprisingly when entering this site to get the book. One of the popular books now is the defending your digital assets against hackers crackers spies and thieves. You may be confused because you can't find the book in the book store around your city. Commonly, the popular book will be sold quickly. And when you have found the store to buy the book, it will be so hurt when you run out ...

Over the past two decades, every scholarly publisher has migrated at least the mechanical aspects of their journal publishing so that they utilize digital means. The academy was comfortable with that for a while, but publishers are under increasing pressure to adapt further. At the American Astronomical Society (AAS), we think that means bringing our publishing program to the point of being ful...

This paper investigates the importance of idiosyncratic consumption risk for the cross-sectional variation in average returns on stocks and bonds. If idiosyncratic consumption risk is not priced, the only pricing factor in a multiperiod economy is the rate of aggregate consumption growth. We o®er evidence that the cross-sectional variance of consumption growth is also a priced factor. This demo...

This paper is an exploration of the relationships among the firm's financial structure, its choice of liquid asset holdings, and growth. The literature on the determinants of economic growth has long studied the role of financial development in promoting growth. The literature on corporate finance provides some microeconomic underpinnings for this relationship in the form of a variety of partia...

Conditional tests of the International CAPM in previous studies (e.g., Harvey, 1991) help identify predictability but not causality. In this paper, we take an event-study approach to examine if the world market risk premium is particularly higher on prescheduled USmacroeconomic announcement days. Empirically, we apply the Savor andWilson (2014) methodology to daily US stocks as well as foreign ...

In contrast to the existing literature on repeated games that assumes a Þxed discount factor, I study an environment in which it is more realistic to assume a ßuctuating discount factor. In a repeated oligopoly, as the interest rate changes, so too does the degree to which Þrms discount the future. I characterize the optimal tacit collusion equilibrium when the discount factor changes over time...