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A Theory of Quasi-Experimental Evaluation of School Quality

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  • Yusuke Narita

    (Massachusetts Institute of Technology)

Abstract

Many centralized school admissions systems use lotteries to ration limited seats at oversubscribed schools. The resulting random assignment is used by empirical researchers to identify the effects of schools on outcomes like test scores. I first find that the two most popular empirical research designs may not successfully extract a random assignment of applicants to schools. When do the research designs overcome this problem? I show the following main results for a class of data-generating mechanisms containing those used in practice: The “first-choice†research design extracts a random assignment under a mechanism if the mechanism is strategy-proof for schools. In contrast, the other “qualification instrument†research design does not necessarily extract a random assignment under any mechanism. The former research design is therefore more compelling than the latter. Many applications of the two research designs need some implicit assumption, such as large-sample approximately random assignment, to justify their empirical strategy.

Suggested Citation

  • Yusuke Narita, 2020. "A Theory of Quasi-Experimental Evaluation of School Quality," Working Papers 2020-085, Human Capital and Economic Opportunity Working Group.
  • Handle: RePEc:hka:wpaper:2020-085
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    References listed on IDEAS

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    Cited by:

    1. Yusuke Narita & Kohei Yata, 2021. "Algorithm is Experiment: Machine Learning, Market Design, and Policy Eligibility Rules," Working Papers 2021-022, Human Capital and Economic Opportunity Working Group.
    2. Atı̇la Abdulkadı̇roğlu & Joshua D. Angrist & Yusuke Narita & Parag Pathak, 2022. "Breaking Ties: Regression Discontinuity Design Meets Market Design," Econometrica, Econometric Society, vol. 90(1), pages 117-151, January.
    3. Narita, Yusuke & Yata, Kohei, 2022. "Algorithm is Experiment: Machine Learning, Market Design, and Policy Eligibility Rules," CEI Working Paper Series 2021-05, Center for Economic Institutions, Institute of Economic Research, Hitotsubashi University.
    4. Narita, Yusuke & Yata, Kohei, 2022. "Algorithm is Experiment: Machine Learning, Market Design, and Policy Eligibility Rules," Discussion Paper Series 730, Institute of Economic Research, Hitotsubashi University.

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    More about this item

    Keywords

    market design; natural experiment; school effectiveness;
    All these keywords.

    JEL classification:

    • C93 - Mathematical and Quantitative Methods - - Design of Experiments - - - Field Experiments
    • D47 - Microeconomics - - Market Structure, Pricing, and Design - - - Market Design
    • I24 - Health, Education, and Welfare - - Education - - - Education and Inequality

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