Approximating the Equilibrium Effects of Informed School Choice

Claudia Allende, Francisco Gallego and Christopher Neilson

No 35837, NBER Working Papers from National Bureau of Economic Research, Inc

Abstract: We study how information about school quality affects families’ choices and how scaling up the intervention changes its impact. In a randomized trial in Chile, we offer families a short video and a personalized school report card before they enroll their children. Treated families choose schools with higher test scores and value added. Among families reached before enrollment, treated children score about 0.2 standard deviations higher in fourth grade, with positive but less precise estimates on later assessments. We embed the experimentally identified demand shift in a structural model of school choice and competition to study equilibrium effects at scale. Capacity constraints and centralized assignment attenuate the demand-side gains, but the same shift in demand strengthens schools’ incentives to improve quality, and the supply response roughly offsets the congestion effect. More generally, equilibrium scaling can alter experimental effects in either direction because congestion and endogenous quality responses work against each other. We use the model to guide the design of a follow-up cluster-randomized experiment, focusing on the tradeoff between precision and contamination from equilibrium spillovers.

JEL-codes: L10 L15 (search for similar items in EconPapers)
Date: 2026-10
Note: IO
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Related works:
Working Paper: Approximating The Equilibrium Effects of Informed School Choice (2019)
Working Paper: Approximating the Equilibrium Effects of Informed School Choice (2019)
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