In this article, the authors quantify the potential efficiency gains from moving toward an income redistribution system that bases transfers on membership in demographic groups such as race and gender. They compute four measures of the marginal efficiency cost (MEC) of redistribution under a...

This article shows how admission and enrollment processes affect the interpretation of simple validation studies of academic performance. In a competitive market for students, optimal behavior of admissions committees and applicants drives the simple correlation between test scores and...