Upping the Ante

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Tác giả: Tahir Andrabi

Ngôn ngữ: eng

Ký hiệu phân loại: 795.41 Games in which skill is a major element

Thông tin xuất bản: World Bank, Washington, DC, 2018

Mô tả vật lý:

Bộ sưu tập: Tài liệu truy cập mở

ID: 311225

This paper tests for financial constraints as a market failure in education in a low-income country. In an experimental setup, unconditional cash grants are allocated to one private school or all private schools in a village. Enrollment increases in both treatments, accompanied by infrastructure investments. However, test scores and fees only increase in the setting of all private schools 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. The findings of higher social surplus in the setting of all private schools, but greater private returns in the setting of one private school underscore the importance of leveraging market structure in designing educational subsidies.
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