The evaluation of numerous school reforms requires an understanding of the value of better schools. Given the difficulty of calculating the relationship between school quality and student outcomes, I turn to another method and use house prices to infer the value parents place on school quality. I look within school districts at houses located on attendance district boundaries; houses then differ only by the elementary school the child attends. I thereby effectively remove the variation in neighborhoods, taxes, and school spending. I find that parents are willing to pay 2.5 percent more for a 5 percent increase in test scores. This finding is robust to a number of sensitivity checks.

Multifactorial mechanisms underlying late-onset Alzheimer's disease (LOAD) are poorly characterized from an integrative perspective. Here spatiotemporal alterations in brain amyloid-β deposition, metabolism, vascular, functional activity at rest, structural properties, cognitive integrity and peripheral proteins levels are characterized in relation to LOAD progression. We analyse over 7,700 brain images and tens of plasma and cerebrospinal fluid biomarkers from the Alzheimer's Disease Neuroimaging Initiative (ADNI). Through a multifactorial data-driven analysis, we obtain dynamic LOAD–abnormality indices for all biomarkers, and a tentative temporal ordering of disease progression. Imaging results suggest that intra-brain vascular dysregulation is an early pathological event during disease development. Cognitive decline is noticeable from initial LOAD stages, suggesting early memory deficit associated with the primary disease factors. High abnormality levels are also observed for specific proteins associated with the vascular system's integrity. Although still subjected to the sensitivity of the algorithms and biomarkers employed, our results might contribute to the development of preventive therapeutic interventions.

Centres of Excellence in Neurodegeneration.

There is an extensive theoretical literature that postulates a trade-off between child quantity and quality within a family. However, there is little causal evidence that speaks to this theory. Using a rich data set on the entire population of Norway over an extended period of time, we examine the effects of family size and birth order on the educational attainment of children. We find a negative correlation between family size and children's education, but when we include indicators for birth order or use twin births as an instrument, family size effects become negligible. In addition, higher birth order has a significant and large negative effect on children's education. We also study adult earnings, employment, and teenage childbearing and find strong evidence for birth order effects with these outcomes, particularly among women. These findings suggest the need to revisit economic models of fertility and child "production," focusing not only on differences across families but differences within families as well.

Lower birth weight babies have worse outcomes, both short-run in terms of one-year mortality rates and longer run in terms of educational attainment and earnings. However, recent research has called into question whether birth weight itself is important or whether it simply reflects other hard-to-measure characteristics. By applying within twin techniques using an unusually rich dataset from Norway, we examine the effects of birth weight on both short-run and long-run outcomes for the same cohorts. We find that birth weight does matter; despite short-run twin fixed effects estimates that are much smaller than OLS estimates, the effects on longer-run outcomes such as adult height, IQ, earnings, and education are significant and similar in magnitude to OLS estimates.

The literature is divided on the expected effects of increased competition and consolidation in the financial sector on the supply of credit to relationship borrowers. This paper tests whether policy changes fostering competition and consolidation in U.S. banking helped or harmed entrepreneurs. We find that the rate of new incorporations increases following deregulation of branching restrictions, and that deregulation reduces the negative effect of concentration on new incorporations. We also find the formation of new incorporations increases as the share of small banks decreases, suggesting that diversification benefits of size outweigh the possible comparative advantage small banks may have in forging relationships.OVER THE PAST TWO DECADES, the U.S. financial sector has been reshaped by rapid technological innovation and deregulation. In the 1970s, traditional financial intermediaries, mainly banks, provided the lion's share of credit to nonfinancial companies. At that time, banks had the advantage because they were protected from competitive pressures; price competition was limited by Regulation Q, and entry into banking markets was limited by restrictions on in-state branching and interstate banking.All of this changed over the past 25 years. Starting in the latter half of the 1970s, the U.S. banking system began to be reshaped, both by technological innovations and by the removal of many of these constraining regulations. In the early 1980s, for example, interest rate ceilings were largely removed, allowing banks to compete more vigorously for funds. New technologies like the automated teller machine also enhanced competition within banking, and innovations such as the cash management account offered by nonbank financial companies enhanced competitive pressures from outside the industry. By the end of the 1980s, banks had lost substantial ground to nonbank financial institutions and capital markets; commercial paper and bonds, for example, now exceed bank loans in importance~Figure 1!.During the same period, restrictions on banks' ability to expand into new markets were lifted by state-level legislative initiatives allowing both branching across the state and allowing interstate banking-that is, cross-state

Using data from a unique nationally representative sample of businesses, the Educational Quality of the Workforce National Employers Survey (EQW-NES), matched with the Bureau of the Census' Longitudinal Research Database (LRD), we examine the impact of workplace practices, information technology and human capital investments on productivity. We estimate an augmented Cobb Douglas production function with both cross section and panel data covering the period of 1987S1993 using both within and GMM estimators. We find that what is associated with higher productivity is not so much whether or not an employer adopts a particular work practice, but rather how that work practice is actually implemented within the establishment. We also find that those unionized establishments that have adopted what have been called new or 'transformed' industrial relations practices that promote joint decisionmaking coupled with incentive based compensation have higher productivity than other similar non-union plants, while those businesses that are unionized but maintain more traditional labor management relations have lower productivity. We also find that the higher the average educational level of production workers or the greater the proportion of non-managerial workers who use computers, the higher is plant productivity.

Economists and social scientists have long been interested in intergenerational mobility, and documenting the persistence between parents and children's outcomes has been an active area of research. However, since Gary Solon's 1999 Chapter in the Handbook of Labor Economics, the literature has taken an interesting turn. In addition to focusing on obtaining precise estimates of correlations and elasticities, the literature has placed increased emphasis on the causal mechanisms that underlie this relationship. This chapter describes the developments in the intergenerational transmission literature since the 1999 Handbook Chapter. While there have been some important contributions in terms of measurement of elasticities and correlations, we focus primarily on advances in our understanding of the forces driving the relationship and less on the precision of the correlations themselves.