Some stuff for tomorrow's class session

On wage setting as an application of ideas from the insurance model

Canonical question:  Do wages attach to the job (pooling equilibrium) or the individual (separating equilibrium)?

One story for pooling equilibrium - Akerlof's model of partial gift exchange.

JSTOR: The Quarterly Journal of Economics, Vol. 97, No. 4 (Nov., 1982), pp. 543-569 via kwout

The link is to a fascinating book review on how these issues play out with regard to rewarding K-12 Teachers, contrasting the Diane Ravitch view with the Michelle Rhee view.  

Apropos student blog posts:

In all affairs it's a healthy thing now and then to hang a question mark on the things you have long taken for granted.

Bertrand Russell (1872 - 1970)

PowerPoint on IlliniBucks and Transfer Pricing

pptx file 

pdf file