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An Alternative Instrument for Private School Competition

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  • Danny Cohen Zada

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    (Dept. of Economics, Ben-Gurion University of the Negev)

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    Abstract

    Empirical studies estimating the effect of private school competition on student outcomes commonly use the share of Catholics in the local population as an instrument for private school competition. However, it has recently been argued that since this instrument is likely to be correlated with unmeasured student characteristics that vary across localities, it cannot be a valid instrument for private school competition. I suggest using instead the local share of Catholics in the population in 1890 and its squared term. I show that these instruments are very strong and are also exogenous to both student achievements and private school competition. These instruments can also be applied to estimate the treatment effect of Catholic schools.

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    File URL: http://www.ec.bgu.ac.il/monaster/admin/papers/0705.pdf
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    Bibliographic Info

    Paper provided by Ben-Gurion University of the Negev, Department of Economics in its series Working Papers with number 0705.

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    Length: 39 pages
    Date of creation: 2007
    Date of revision:
    Handle: RePEc:bgu:wpaper:0705

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    Keywords: School choice; demand for schooling; Catholic share; competition.;

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    19. Cohen-Zada, Danny & Justman, Moshe, 2003. "The political economy of school choice: linking theory and evidence," Journal of Urban Economics, Elsevier, vol. 54(2), pages 277-308, September.
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    24. Hausman, Jerry & Stock, James H. & Yogo, Motohiro, 2005. "Asymptotic properties of the Hahn-Hausman test for weak-instruments," Economics Letters, Elsevier, vol. 89(3), pages 333-342, December.
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