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Estimating Parents’ Valuations of Class Size Reductions Using Attrition in the Tennessee STAR Experiment

Author

Listed:
  • Rohlfs Chris

    (Market Risk Analytics, Morgan Stanley, New York, NY, USA)

  • Zilora Melanie

    (Department of Economics, Carnegie Mellon University, Tepper School of Business 5000 Forbes Avenue, Pittsburgh, PA 15213, USA)

Abstract

This study estimates parents’ valuations of small classes by examining the effects of randomly assigned class type on the decision to remove one’s child from the Tennessee Student Teacher Achievement Ratio experiment, using a new hedonic estimation strategy that estimates the cash payment that would be required to generate the same difference in attrition rates as was observed between treatment and control groups. In 2010 dollars, our preferred estimates indicate that parents on the margin of sending their children to private schools valued small classes at $2,000–$18,000 per year relative to a cost of $3,000 per student year.

Suggested Citation

  • Rohlfs Chris & Zilora Melanie, 2014. "Estimating Parents’ Valuations of Class Size Reductions Using Attrition in the Tennessee STAR Experiment," The B.E. Journal of Economic Analysis & Policy, De Gruyter, vol. 14(3), pages 755-790, July.
    • Handle: RePEc:bpj:bejeap:v:14:y:2014:i:3:p:36:n:6
    DOI: 10.1515/bejeap-2013-0024
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    References listed on IDEAS

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    Cited by:

    1. Michael Gilraine & Hugh Macartney & Robert McMillan, 2018. "Estimating the Direct and Indirect Effects of Major Education Reforms," NBER Working Papers 24191, National Bureau of Economic Research, Inc.
    2. Mike Gilraine & Hugh Macartney & Rob McMillan, 2018. "Education Reform in General Equilibrium: Evidence from California's Class Size Reduction," Working Papers tecipa-594, University of Toronto, Department of Economics.

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    More about this item

    Keywords

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    JEL classification:

    • I22 - Health, Education, and Welfare - - Education - - - Educational Finance; Financial Aid
    • 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
    • D61 - Microeconomics - - Welfare Economics - - - Allocative Efficiency; Cost-Benefit Analysis
    • C35 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Discrete Regression and Qualitative Choice Models; Discrete Regressors; Proportions

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