THREE ESSAYS ON FINANCIAL DISTRESS AND CORPORATE CONTROL Chapter One develops this idea and implements tests of the hypothesis that school effectiveness is an important determinant of residential choices among local-monopoly school districts. I model a Tiebout -style housing market in which house prices ration access to desirable schools, which may be desirable either because they are particularly effective or because they enroll a desirable set of students. I develop observable implications of these two hypotheses for the degree of stratification of student test scores across schools, and I look for evidence of these implications in data on the joint distribution of student characteristics and SAT scores
