Chapter 12 focuses on how economists model production functions for education production units and, using these models, estimate the effect various inputs have on student outcomes. The most common educational production models are single output (usually student academic performance as measured by test scores), multi-input, and use secondary data collected at the school/classroom/individual student levels to estimate model parameters. Since these are not experimental data, students are not randomly assigned to inputs, and the main methodological problem is to identify the causal impact of particular inputs on student outcomes. The chapter discusses the role of teachers in educational production functions, the methods economists have used to estimate the contribution of teachers to knowledge production, as well as some examples of models to estimate the causal effects of other inputs into the production process – specifically, computer-assisted learning in primary school, summer school and student retention in primary and middle school, and an increased time on core subject teaching through a longer school day.

A blend of development and commercial finance should make for lower interest rates, less risk aversity and more developmental focus of financing packages. This chapter discusses the complexities of blended finance and a few of the key lessons learned.

As infrastrucutre is developed the land around the infrastructure, or in its zone of service delivery, may become more valuable. This windfall land value should be shared with the developers of the infrastrucutre, to allow more infrastrucutre to be developed anf to improve equity of benefits sharing.

Infrastrucutre development may provide an opportunity to generate innovatve revenues from commercial activites in, above, under and around the infrastrucutre. As projects are developed, it is important that the potential for such commercial value capture is considered in pre-feasibility studies and feasibility studies, to identify potential commercial value capture, improve the financial viability of the project, reduce the fiscal liabilities created through such projects and to improve the bankability of projects.

Land value and commercial value capture can be implemented through programs. This chapter uses the example of transit oriented development, provides lessons learned and identifies how land value capture and commercial value capture fit into transit oriented development programs.

Climate finance remains a relatively small part of the global finance market but is becoming increasinglt prominent; it is expected that all global finance will take on climate characteristics, causing climate standards and verification to become common. This chapter explores the current climate finance markets, the standards and other market infrastrucutre that have developed.

Islamic finance must follow rules developed by Islamic experts in the context of this global market. This chapter provides a description of the use of islamic finance for infrastructure projects.

This chapter provides an overview of the book and summary of keey issues and lessons.