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Performance-Based Rankings and School Quality

Author

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  • Herresthal, C.
Abstract
I study students’ inferences about school quality from performance-based rankings in a dynamic setting. Schools differ in location and unobserved quality, students differ in location and ability. Short-lived students observe a school ranking as a signal about schools’ relative qualities, but this signal also depends on the abilities of schools’ past intakes. Students apply to schools, trading off expected quality against proximity. Oversubscribed schools select applicants based on an admission rule. In steady-state equilibrium, I find that rankings are more informative if more able applicants are given priority in admissions or if students care less about distance to school.

Suggested Citation

  • Herresthal, C., 2017. "Performance-Based Rankings and School Quality," Cambridge Working Papers in Economics 1754, Faculty of Economics, University of Cambridge.
    • Handle: RePEc:cam:camdae:1754
    Note: cush2
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    File URL: http://www.econ.cam.ac.uk/research-files/repec/cam/pdf/cwpe1754.pdf
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    References listed on IDEAS

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    More about this item

    Keywords

    performance-based rankings; information acquisition; endogenous signal; consumer choice;
    All these keywords.

    JEL classification:

    • D83 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Search; Learning; Information and Knowledge; Communication; Belief; Unawareness
    • I21 - Health, Education, and Welfare - - Education - - - Analysis of Education
    • H75 - Public Economics - - State and Local Government; Intergovernmental Relations - - - State and Local Government: Health, Education, and Welfare

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