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Preferences, selection, and value added: A structural approach

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  • Akyol, Pelin
  • Krishna, Kala

Abstract

What do applicants take into consideration when choosing a high school? To what extent do schools contribute to their students' academic success? To answer these questions, we model students' preferences and obtain average valuation placed on each school. We then investigate what drives these valuations by carefully controlling for endogeneity using a set of creative instruments suggested by our model. We find that valuation is based on a school's location, its selectivity as measured by its cutoff score, value added and past performance in university entrance exams. However, cutoffs affect school valuation an order of magnitude more than does value added.

Suggested Citation

  • Akyol, Pelin & Krishna, Kala, 2017. "Preferences, selection, and value added: A structural approach," European Economic Review, Elsevier, vol. 91(C), pages 89-117.
    • Handle: RePEc:eee:eecrev:v:91:y:2017:i:c:p:89-117
    DOI: 10.1016/j.euroecorev.2016.09.009
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    2. 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.
    3. Nikhil Agarwal & Paulo J. Somaini, 2019. "Revealed Preference Analysis of School Choice Models," NBER Working Papers 26568, National Bureau of Economic Research, Inc.
    4. 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.
    5. 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.
    6. 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.
    7. 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.
    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. 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).
    10. Nikhil Agarwal & Eric Budish, 2021. "Market Design," NBER Working Papers 29367, National Bureau of Economic Research, Inc.
    11. Julien Combe & Olivier Tercieux & Camille Terrier, 2022. "The Design of Teacher Assignment: Theory and Evidence [House Allocation with Existing Tenants]," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 89(6), pages 3154-3222.
    12. 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.
    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. 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.
    16. 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

    Keywords

    School choice; School value-added;

    JEL classification:

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

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