Suchergebnisse

We develop a model of investment with financial constraints and use it to investigate the relation between investment and Tobin's q. A firm is financed partly by insiders, who control its assets, and partly by outside investors. When their wealth is scarce, insiders earn a rate of return higher than the market rate of return, i.e., they receive a quasi-rent on invested capital. This rent is priced into the value of the firm, so Tobin's q is driven by two forces: changes in the value of invested capital, and changes in the value of the insiders' future rents per unit of capital. This weakens the correlation between q and investment, relative to the frictionless benchmark. We present a calibrated version of the model, which, due to this effect, generates realistic correlations between investment, q, and cash flow.

Childhood lead exposure can lead to psychological deficits that are strongly associated with aggressive and criminal behavior. In the late 1970s in the United States, lead was removed from gasoline under the Clean Air Act. Using the sharp state-specific reductions in lead exposure resulting from this removal, this article finds that the reduction in childhood lead exposure in the late 1970s and early 1980s is responsible for significant declines in violent crime in the 1990s, and may cause further declines into the future. The elasticity of violent crime with respect to lead is estimated to be approximately 0.8.

Joshua Clark never left New Orleans during Hurricane Katrina, choosing instead to band together with fellow holdouts in the French Quarter, pooling resources and volunteering energy in an effort to save the city they loved. When Katrina hit, Clark, a key correspondent for National Public Radio during the storm, immediately began to record hundreds of hours of conversations with its victims, not only in the city but throughout the Gulf: the devastated poor and rich alike; rescue workers from around the country; reporters; local characters who could exist nowhere else but New Orleans; politicians; the woman Clark loved, in a relationship ravaged by the storm. Their voices resound throughout this memoir of a unique and little-known moment of anarchy and chaos, of heartbreaking kindness and incomprehensible anguish, of mercy and madness as only America could deliver it.--From publisher description

The storm / Jenni Bergal -- The environment / Sara Shipley Hiles -- The levees / John McQuaid -- Emergency preparedness / Jim Morris -- Social services / Katy Reckdahl -- Health care / Jenni Bergal -- Politics / Curtis Wilkie -- Housing and insurance / Frank Koughan