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College Choice and the Selection of Mechanisms: A Structural Empirical Analysis

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  • Carvalho, José-Raimundo
  • Magnac, Thierry
  • Xiong, Qizhou

Abstract

We use rich microeconomic data on performance and choices of students at college entry to study the interaction between the revelation of college preferences through exams and the selection of allocation mechanisms. We propose a method in which preferences and expectations of students are identified from data on choices and multiple exam grades. Counterfactuals we consider balance costs arising from congestion and exam organization. Moving to deferred acceptance or inverting the timing of choices and exams are shown to increase welfare. Redistribution among students or schools is sizeable in all counterfactual experiments.

Suggested Citation

  • Carvalho, José-Raimundo & Magnac, Thierry & Xiong, Qizhou, 2016. "College Choice and the Selection of Mechanisms: A Structural Empirical Analysis," IWH Discussion Papers 3/2016, Halle Institute for Economic Research (IWH).
    • Handle: RePEc:zbw:iwhdps:iwh-3-16
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    More about this item

    Keywords

    education; two-sided matching; school allocation mechanism; policy evaluation;
    All these keywords.

    JEL classification:

    • C57 - Mathematical and Quantitative Methods - - Econometric Modeling - - - Econometrics of Games and Auctions
    • D47 - Microeconomics - - Market Structure, Pricing, and Design - - - Market Design
    • I21 - Health, Education, and Welfare - - Education - - - Analysis of Education

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