EconPapers    
Economics at your fingertips  
 

Estimating the Value of Higher Education Financial Aid: Evidence from a Field Experiment

Christian Belzil (), Arnaud Maurel () and Modibo Sidibe ()

No 23641, NBER Working Papers from National Bureau of Economic Research, Inc

Abstract: Using data from a Canadian field experiment on the financial barriers to higher education, we estimate the distribution of the value of financial aid for prospective students, and relate it to parental socio-economic background, individual skills, risk and time preferences. Our results point out that a considerable share of prospective students are affected by credit constraints. We find that most of the individuals are willing to pay a sizable interest premium above the prevailing market rate for the option to take up a loan, with a median interest rate wedge equal to 6.6 percentage points for a $1,000 loan. The willingness-to-pay for financial aid is highly heterogeneous across students, with preferences and in particular discount factors, playing a key role in accounting for this variation.

JEL-codes: I22 I23 J24 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-edu and nep-exp
Date: 2017-08
Note: ED LS
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (5) Track citations by RSS feed

Downloads: (external link)
http://www.nber.org/papers/w23641.pdf (application/pdf)

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:nbr:nberwo:23641

Ordering information: This working paper can be ordered from
http://www.nber.org/papers/w23641

Access Statistics for this paper

More papers in NBER Working Papers from National Bureau of Economic Research, Inc National Bureau of Economic Research, 1050 Massachusetts Avenue Cambridge, MA 02138, U.S.A.. Contact information at EDIRC.
Bibliographic data for series maintained by ().

 
Page updated 2019-04-17
Handle: RePEc:nbr:nberwo:23641