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Structural Estimation of a Model of School Choices: the Boston Mechanism vs. Its Alternatives

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  • Caterina Calsamglia
  • Chao Fu
  • Maia Güell

Abstract

We model household choice of schools under the Boston mechanism (BM) and develop a new method, applicable to a broad class of mechanisms, to fully solve the choice problem even if it is infeasible via the traditional method. We estimate the joint distribution of household preferences and sophistication types using administrative data from Barcelona. Counterfactual policy analyses show that a change from BM to the Deferred Acceptance mechanism would decrease average welfare by 1,020 euros, while a change to the top trading cycles mechanism would increase average welfare by 460 euros.

Suggested Citation

  • Caterina Calsamglia & Chao Fu & Maia Güell, 2018. "Structural Estimation of a Model of School Choices: the Boston Mechanism vs. Its Alternatives," NBER Working Papers 24588, National Bureau of Economic Research, Inc.
  • Handle: RePEc:nbr:nberwo:24588
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    JEL classification:

    • I0 - Health, Education, and Welfare - - General
    • J0 - Labor and Demographic Economics - - General

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