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Housing choices, sorting, and the distribution of educational benefits under deferred acceptance

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  • Jing Xu

Abstract

I study the welfare and distributional consequences of introducing the student‐proposing deferred acceptance in a model where schools have exogenous qualities and the benefit from attending a school is supermodular in school quality and student type. Unlike neighborhood assignment, deferred acceptance induces nonpositive assortative matching where higher type students do not necessarily choose neighborhoods with better schools. Student types are more heterogeneous within neighborhoods under deferred acceptance. Assuming an elastic housing supply, deferred acceptance benefits residents in lower quality neighborhoods with more access to higher quality schools. Moreover, more parents will “vote with their feet” for deferred acceptance, other things equal, than for neighborhood assignment.

Suggested Citation

  • Jing Xu, 2019. "Housing choices, sorting, and the distribution of educational benefits under deferred acceptance," Journal of Public Economic Theory, Association for Public Economic Theory, vol. 21(3), pages 558-595, June.
    • Handle: RePEc:bla:jpbect:v:21:y:2019:i:3:p:558-595
    DOI: 10.1111/jpet.12365
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    Cited by:

    1. Paolo Melindi‐Ghidi, 2018. "Inequality, educational choice, and public school quality in income‐mixing communities," Journal of Public Economic Theory, Association for Public Economic Theory, vol. 20(6), pages 914-943, December.
    2. Xiaokuai Shao, 2021. "Matching under school and home bundling," International Tax and Public Finance, Springer;International Institute of Public Finance, vol. 28(3), pages 567-611, June.

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