Preferences, selection, and value added: A structural approach

Pelin Akyol, Kala Krishna

Research output: Contribution to journalArticlepeer-review

14 Scopus citations

Abstract

What do applicants take into consideration when choosing a high school? To what extent do schools contribute to their students' academic success? To answer these questions, we model students' preferences and obtain average valuation placed on each school. We then investigate what drives these valuations by carefully controlling for endogeneity using a set of creative instruments suggested by our model. We find that valuation is based on a school's location, its selectivity as measured by its cutoff score, value added and past performance in university entrance exams. However, cutoffs affect school valuation an order of magnitude more than does value added.

Original languageEnglish (US)
Pages (from-to)89-117
Number of pages29
JournalEuropean Economic Review
Volume91
DOIs
StatePublished - Jan 1 2017

All Science Journal Classification (ASJC) codes

  • Finance
  • Economics and Econometrics

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