Estimating the Effect of Financial Aid Offers on College Enrollment: A Regression-Discontinuity Approach

@article{Klaauw2002EstimatingTE,
  title={Estimating the Effect of Financial Aid Offers on College Enrollment: A Regression-Discontinuity Approach},
  author={W. V. D. Klaauw},
  journal={International Economic Review},
  year={2002},
  volume={43},
  pages={1249-1287}
}
  • W. V. D. Klaauw
  • Published 2002
  • Economics
  • International Economic Review
  • An important problem faced by colleges and universities, that of evaluating the effect of their financial aid offers on student enrollment decisions, is complicated by the likely endogeneity of the aid offer variable in a student enrollment equation. This article shows how discontinuities in an East Coast college's aid assignment rule can be exploited to obtain credible estimates of the aid effect without having to rely on arbitrary exclusion restrictions and functional form assumptions… CONTINUE READING
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