chapter  24
27 Pages


WithRichard Blundell

This chapter has benefited enormously from courses taught jointly with Manuel Arellano and Mark Stewart. My colleagues Costas Meghir and Richard Smith also deserve special thanks, although none of the above can be held responsible for errors herein. Finance from the Economics and Social Research Council under projects B0023 2150 and B0023 2307, under which many of these ideas were developed, is gratefully acknowledged.