EconPapers    
Economics at your fingertips  
 

Upping the Ante: The Equilibrium Effects of Unconditional Grants to Private Schools

Tahir Andrabi, Jishnu Das, Asim Ijaz Khwaja, Selcuk Ozyurt and Niharika Singh
Additional contact information
Tahir Andrabi: Pomona College
Jishnu Das: World Bank
Asim Ijaz Khwaja: Harvard U
Selcuk Ozyurt: Sabanci U
Niharika Singh: Harvard U

Working Paper Series from Harvard University, John F. Kennedy School of Government

Abstract: We test for financial constraints as a market failure in education in a low-income country by experimentally allocating unconditional cash grants to either one (L) or to all (H) private schools in a village. Enrollment increases in both treatments, accompanied by infrastructure investments. However, test scores and fees only increase in H along with higher teacher wages. This differential impact follows from a canonical oligopoly model with capacity constraints and endogenous quality: greater financial saturation crowds-in quality investments. Higher social surplus in H, but greater private returns in L underscores the importance of leveraging market structure in designing educational subsidies.

JEL-codes: I25 I28 L22 L26 O16 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-ure
Date: 2018-06
References: View references in EconPapers View complete reference list from CitEc
Citations: Track citations by RSS feed

Downloads: (external link)
https://research.hks.harvard.edu/publications/getFile.aspx?Id=1673

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:ecl:harjfk:rwp18-019

Access Statistics for this paper

More papers in Working Paper Series from Harvard University, John F. Kennedy School of Government Contact information at EDIRC.
Bibliographic data for series maintained by ().

 
Page updated 2019-06-17
Handle: RePEc:ecl:harjfk:rwp18-019