Estimating the Effect of Student Aid on College Enrollment: Evidence from a Government Grant Policy Reform

Helena Nielsen, Torben Sørensen and Christopher Taber ()
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Christopher Taber: School of Economics and Management, University of Aarhus, Denmark, Postal: 8000 Aarhus C, Denmark

Economics Working Papers from Department of Economics and Business Economics, Aarhus University

Abstract: In this paper, we investigate the responsiveness of the demand for college to changes in student aid arising from a Danish reform. We separately identify the effect of aid from that of other observed and unobserved variables such as parental income. We exploit the combination of a kinked aid scheme and a reform of the student aid scheme to identify the effect of direct costs on college enrollment. To allow for heterogeneous responses due to borrowing constraints, we use detailed information on parents' assets. We find that enrollment is less responsive than found in other studies and that the presence of borrowing constraints only deters college enrollment to a minor extent.

Keywords: college attendance; educational subsidies; reform; kink regression (search for similar items in EconPapers)
JEL-codes: I22 J24 (search for similar items in EconPapers)
Pages: 38
Date: 2008-10-20
New Economics Papers: this item is included in nep-edu
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Citations: View citations in EconPapers (12)

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https://repec.econ.au.dk/repec/afn/wp/08/wp08_14.pdf (application/pdf)

Related works:
Chapter: Estimating the Effect of Student Aid on College Enrollment: Evidence from a Government Grant Policy Reform (2010)
Journal Article: Estimating the Effect of Student Aid on College Enrollment: Evidence from a Government Grant Policy Reform (2010)
Working Paper: Estimating the Effect of Student Aid on College Enrollment: Evidence from a Government Grant Policy Reform (2008)
Working Paper: Estimating the Effect of Student Aid on College Enrollment: Evidence from a Government Grant Policy Reform (2008)
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Persistent link: https://EconPapers.repec.org/RePEc:aah:aarhec:2008-14

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