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

Helena Nielsen, Torben Sørensen and Christopher R. Taber

No 14535, NBER Working Papers from National Bureau of Economic Research, Inc

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.

JEL-codes: I22 (search for similar items in EconPapers)
Date: 2008-12
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Citations: View citations in EconPapers (14)

Published as Helena Skyt Nielsen & Torben Sørensen & Christopher Taber, 2010. "Estimating the Effect of Student Aid on College Enrollment: Evidence from a Government Grant Policy Reform," American Economic Journal: Economic Policy, American Economic Association, vol. 2(2), pages 185-215, May.
Published as Estimating the Effect of Student Aid on College Enrollment: Evidence from a Government Grant Policy Reform , Helena Skyt Nielsen, Torben Sørensen, Christopher Taber. in Income Taxation, Trans-Atlantic Public Economics Seminar (TAPES) , Gordon and Piketty. 2010

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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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