My dissertation constructs a micro foundation for one important component of the manager's human capital: the ability to predict future events that affect profits of a firm. Prediction ability is measured by quality of information which a manager observes in order to predict future events. It...

This paper constructs an overlapping generations model with a frictional labor market to explain persistent low education in developing countries. When parents are uneducated, their children often face difficulties in finishing school and therefore are likely to remain uneducated. Moreover, if...