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Preferences, Selection, and Value Added: A Structural Approach

Author

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  • Saziye P. Akyol
  • Kala Krishna
Abstract
This paper investigates two main questions: i) What do applicants take into consideration when choosing a high school? ii) To what extent do schools contribute to their students' academic success? To answer these questions, we model students' preferences and derive demand for each school by taking each student's feasible set of schools into account. We obtain average valuation placed on each school from market clearing conditions. Next, we investigate what drives these valuations by carefully controlling for endogeneity using a set of creative instruments suggested by our model. Finally, controlling for mean reversion bias, we look at each school's value-added. We find that students infer the quality of a school from its selectivity and past performance on the university entrance exam. However, the evidence on the value- added by schools shows that highly valued or selective schools do not have high value- added on their students' academic outcomes.

Suggested Citation

  • Saziye P. Akyol & Kala Krishna, 2014. "Preferences, Selection, and Value Added: A Structural Approach," NBER Working Papers 20013, National Bureau of Economic Research, Inc.
  • Handle: RePEc:nbr:nberwo:20013
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    Cited by:

    1. Muharrem Yeşilırmak, 2018. "Decreasing average cost in private schools, existence of majority voting equilibrium, and a policy analysis for Turkey," Review of Economic Design, Springer;Society for Economic Design, vol. 22(1), pages 1-24, June.
    2. Thilo Klein & Robert Aue & Josue Ortega, 2020. "School choice with independent versus consolidated districts," Papers 2006.13209, arXiv.org, revised Jul 2024.
    3. Gabrielle Fack & Julien Grenet & Yinghua He, 2019. "Beyond Truth-Telling: Preference Estimation with Centralized School Choice and College Admissions," American Economic Review, American Economic Association, vol. 109(4), pages 1486-1529, April.
    4. Schwartz, Jacob & Song, Kyungchul, 2024. "The law of large numbers for large stable matchings," Journal of Econometrics, Elsevier, vol. 241(1).
    5. Julien Combe & Olivier Tercieux & Camille Terrier, 2022. "The Design of Teacher Assignment: Theory and Evidence," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 89(6), pages 3154-3222.
    6. Nikhil Agarwal & Paulo J. Somaini, 2019. "Revealed Preference Analysis of School Choice Models," NBER Working Papers 26568, National Bureau of Economic Research, Inc.
    7. Tong Wang & Congyi Zhou, 2020. "High school admission reform in China: a welfare analysis," Review of Economic Design, Springer;Society for Economic Design, vol. 24(3), pages 215-269, December.
    8. Aue, Robert & Bach, Maximilian & Heigle, Julia & Klein, Thilo & Pfeiffer, Friedhelm & Zapp, Kristina, 2020. "The implication of school admission rules for segregation and educational inequality: Research report," ZEW Expertises, ZEW - Leibniz Centre for European Economic Research, number 223254.
    9. Thierry Magnac, 2018. "Quels étudiants pour quelles universités ? Analyses empiriques de mécanismes d’allocation centralisée," Revue économique, Presses de Sciences-Po, vol. 69(5), pages 683-708.
    10. Ahmet Alkan & Sinan Sarpça & Sinan Sarpca, 2023. "Effects of High-Achieving Peers: Findings from a National High School Assignment System," CESifo Working Paper Series 10794, CESifo.
    11. Julien Combe & Umut Mert Dur & Olivier Tercieux & Camille Terrier & M. Utku Ünver, 2022. "Market Design for Distributional Objectives in (Re)assignment: An Application to Improve the Distribution of Teachers in Schools," Boston College Working Papers in Economics 1050, Boston College Department of Economics.
    12. Nikhil Agarwal & Eric Budish, 2021. "Market Design," NBER Working Papers 29367, National Bureau of Economic Research, Inc.
    13. Hayri A. Arslan, 2021. "Preference estimation in centralized college admissions from reported lists," Empirical Economics, Springer, vol. 61(5), pages 2865-2911, November.
    14. repec:hal:cesptp:halshs-01215998 is not listed on IDEAS
    15. Aue, Robert & Klein, Thilo & Ortega, Josué, 2020. "What happens when separate and unequal school districts merge?," ZEW Discussion Papers 20-032, ZEW - Leibniz Centre for European Economic Research.
    16. Bertoni, Marco & Gibbons, Stephen & Silva, Olmo, 2017. "School Choice during a Period of Radical School Reform: Evidence from the Academy Programme," IZA Discussion Papers 11162, Institute of Labor Economics (IZA).
    17. Georgy Artemov & Yeon-Koo Che & YingHua He, 2023. "Stable Matching with Mistaken Agents," Journal of Political Economy Microeconomics, University of Chicago Press, vol. 1(2), pages 270-320.
    18. Eduardo Duque & Juan Pablo Torres-Martinez, 2022. "The Strong Effects of Weak Externalities on School Choice," Working Papers wp542, University of Chile, Department of Economics.

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    More about this item

    JEL classification:

    • I20 - Health, Education, and Welfare - - Education - - - General
    • I21 - Health, Education, and Welfare - - Education - - - Analysis of Education

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