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

Caterina Calsamiglia, Chao Fu and Maia Güell

No 12958, CEPR Discussion Papers from C.E.P.R. Discussion Papers

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.

New Economics Papers: this item is included in nep-des and nep-ure
Date: 2018-05
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