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With international contributors, this second volume in Contemporary Issues, by Joseph Stiglitz and Martin Guzman, includes theoretical, empirical, and policy oriented chapters based on careful utilization of theory and data analysis. Part I focuses on the issues of inequality, poverty, and security. Part II turns to the issue of income contingent loans (ICL), where the repayment in any year depends on the income of the individual in that year. These loans have proved to be an especially effective way of financing higher education, but there has been experimentation of the use of these loans in several other areas.