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  1. Score another one for the importance of peer effects (in crime). Again, where is the cognitive dissonance when it comes to neighborhood based government schooling? Question for readers: do you think if we eliminated the neighborhood restrictions on schooling that the government schools would end up less segregated (not just by race by other socio-economic and demographic characteristics)? Do you think other segmentation mechanisms would arise to keep the peer-groups as homogenous as they are today?
  2. Ethanol subsidies do not end up in pockets of consumers. Shocker. Question for micro students: what does this result imply about the shape of the supply and demand curve in the ethanol market?
  3. College subsidies do not end up in the pockets of students. Shocker. Almost all of the increase in college tuition since 1987 seems to be due to the expansion of Federal Student Loan programs. This is the second paper in the last few months to demonstrate this.

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