Publikation:

Optimal Need-Based Financial Aid

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2021

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Journal of Political Economy. University of Chicago Press. 2021, 129(2), S. 492-533. ISSN 0022-3808. eISSN 1537-534X. Verfügbar unter: doi: 10.1086/711952

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We study the optimal design of student financial aid as a function of parental income. We derive optimal financial aid formulas in a general model. We estimate a model of selection into college for the United States that comprises multidimensional heterogeneity, endogenous parental transfers, dropout, labor supply in college, and uncertain returns. We quantify optimal financial aid in the estimated model and find it is strongly declining in parental income even without distributional concerns. Equity and efficiency go hand in hand.

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ISO 690COLAS, Mark, Sebastian FINDEISEN, Dominik SACHS, 2021. Optimal Need-Based Financial Aid. In: Journal of Political Economy. University of Chicago Press. 2021, 129(2), S. 492-533. ISSN 0022-3808. eISSN 1537-534X. Verfügbar unter: doi: 10.1086/711952
BibTex
@article{Colas2021Optim-52790,
  year={2021},
  doi={10.1086/711952},
  title={Optimal Need-Based Financial Aid},
  number={2},
  volume={129},
  issn={0022-3808},
  journal={Journal of Political Economy},
  pages={492--533},
  author={Colas, Mark and Findeisen, Sebastian and Sachs, Dominik}
}
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