CATHOLIC SCHOOLS, DROPOUT RATES AND EDUCATIONAL ATTAINMENT

This paper examines the effect of Catholic schooling on high-school dropout rates and educational attainment. Particular attention is given to the effect of selection into the Catholic school sector. After adjusting for self-selection, we find that sophomores in the Catholic schools are still substantially more likely to graduate with their class. It is also shown that seniors in the Catholic schools are not more likely to acquire more schooling than other seniors if selection is taken into account.     

AN EMPIRICAL EXAMINATION OF THE AVERCH-JOHNSON EFFECT

In this paper the Averch-Johnson thesis of a capital bias in regulated firms is examined empirically. This is accomplished by estimating a system of factor demand functions using individual plant data from the electric power industry. Results obtained do not provide support for the A-J effect and it is suggested that there are a number of reasons this could have been expected a priori. finally, the implied parameters of the production function are derived and presented; the values are in line with other estimates of the production function for the electric power industry.     

CORPORATE CONTROL AND RISK

Previous empirical research examining the link between firm risk and the type of stockholder control has yielded conflicting results. These studies have sorted firms into two categories, owner-controlled firms and manager-controlled firms, even though the theoretical discussion implies behavior associated with three distinct groups. This paper argues both theoretically and empirically that an owner-manager has more incentive and more opportunity to take risks than a hired manager. Moreover, a hired manager under the control of a dominant stockholder has less opportunity and less incentive to take risks than managers in firms without a dominant stockholding interest.