Séminaire

Structural Estimation of a Model of School Choices: the Boston Mechanism vs. Its Alternatives

Caterina Calsamiglia (Institute of Political Economy and Governance)

23 octobre 2018, 15h30–17h00

Salle MS 001

Econometrics and Empirical Economics Seminar

Résumé

We model household choice of schools under the Boston mechanism (BM) and develop a new method, applicable to a broad class of mechanisms, to fully solve the choice problem even if it is infeasible via the traditional method. We estimate the joint distribution of household preferences and sophistication types using adminis- trative data from Barcelona. Counterfactual policy analyses show that a change from BM to the Deferred Acceptance mechanism would decrease average welfare by 1,020 euros, while a change to the top trading cycles mechanism would increase average welfare by 460 euros.

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