The author models the links between residential choice, education, and productivity in a city composed of several communities. Local complementarities in human capital investment induce occupational segregation, although efficiency may require identical communities. Even when some asymmetry is...

Access to private information is shown to generate both the incentives and the ability to manipulate asset markets through strategically distorted.announcements. The fact that privileged information is noisy interferes with the public's attempts to learn whether such announcements are honest; it...