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Quantifying the Supply Response of Private Schools to Public Policies

Michael Dinerstein and Troy D. Smith

American Economic Review, 2021, vol. 111, issue 10, 3376-3417

Abstract: School policies that cause a large demand shift between public and private schooling may cause some private schools to enter or exit the market. We study how the policy effects differ under a fixed versus changing market structure in the context of a public school funding reform in New York City. We find evidence of a reduction in private schools in response to the reform. Using a model of demand for and supply of private schooling, we estimate that 20 percent of the reform's effect on school enrollments came from increased private school exit and reduced private school entry.

JEL-codes: H75 I21 I22 I28 (search for similar items in EconPapers)
Date: 2021
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Working Paper: Quantifying the Supply Response of Private Schools to Public Policies (2015) Downloads
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DOI: 10.1257/aer.20151723

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