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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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    Related research

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

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    References

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    3. Jepsen, Christopher, 2002. "The role of aggregation in estimating the effects of private school competition on student achievement," Journal of Urban Economics, Elsevier, vol. 52(3), pages 477-500, November.
    4. Neal, Derek, 1997. "The Effects of Catholic Secondary Schooling on Educational Achievement," Journal of Labor Economics, University of Chicago Press, vol. 15(1), pages 98-123, January.
    5. 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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    7. Greene, Kenneth V. & Kang, Byung-Goo, 2004. "The effect of public and private competition on high school outputs in New York State," Economics of Education Review, Elsevier, vol. 23(5), pages 497-506, October.
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    9. James H. Stock & Motohiro Yogo, 2002. "Testing for Weak Instruments in Linear IV Regression," NBER Technical Working Papers 0284, National Bureau of Economic Research, Inc.
    10. William Sander, 2000. "Parochial Schools and Student Achievement: Findings for Older Adults," Education Economics, Taylor & Francis Journals, vol. 8(3), pages 259-268.
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    12. 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.
    13. Thomas Dee, 2005. "The Effects of Catholic Schooling on Civic Participation," International Tax and Public Finance, Springer, vol. 12(5), pages 605-625, September.
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    17. Donald W.K. Andrews & James H. Stock, 2005. "Inference with Weak Instruments," Cowles Foundation Discussion Papers 1530, Cowles Foundation for Research in Economics, Yale University.
    18. Cragg, John G. & Donald, Stephen G., 1993. "Testing Identifiability and Specification in Instrumental Variable Models," Econometric Theory, Cambridge University Press, vol. 9(02), pages 222-240, April.
    19. Joseph G. Altonji & Todd E. Elder & Christopher R. Taber, 2002. "An Evaluation of Instrumental Variable Strategies for Estimating the Effects of Catholic Schools," NBER Working Papers 9358, National Bureau of Economic Research, Inc.
    20. Christopher R. Geller & David L. Sjoquist & Mary Beth Walker, 2006. "The Effect of Private School Competition on Public School Performance in Georgia," Public Finance Review, , vol. 34(1), pages 4-32, January.
    21. Hamilton, Bruce W. & Macauley, Molly K., 1991. "Determinants and consequences of the private -- Public school choice," Journal of Urban Economics, Elsevier, vol. 29(3), pages 282-294, May.
    22. McCormick, Robert & Moore, Cora & Yandle, Bruce, 1994. " Private and Public Choices in Public Education: An Investigation of Trustee Effects," Public Choice, Springer, vol. 78(3-4), pages 219-30, March.
    23. Caroline Minter Hoxby, 1994. "Do Private Schools Provide Competition for Public Schools?," NBER Working Papers 4978, National Bureau of Economic Research, Inc.
    24. Buddin, Richard J. & Cordes, Joseph J. & Kirby, Sheila Nataraj, 1998. "School Choice in California: Who Chooses Private Schools?," Journal of Urban Economics, Elsevier, vol. 44(1), pages 110-134, July.
    25. Sander, William & Krautmann, Anthony C, 1995. "Catholic Schools, Dropout Rates and Educational Attainment," Economic Inquiry, Western Economic Association International, vol. 33(2), pages 217-33, April.
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