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Author: Findeisen, Sebastian
Resulting in 1 citation.
1. Colas, Mark
Findeisen, Sebastian
Sachs, Dominik
Optimal Need-Based Financial Aid
Journal of Political Economy published online (30 September 2020): DOI: 10.1086/711952.
Also: https://www.journals.uchicago.edu/doi/10.1086/711952
Cohort(s): NLSY97
Publisher: University of Chicago Press
Keyword(s): Financial Assistance; Household Income; Parental Investments; Student Loans

We study the optimal design of student financial aid as a function of parental income. We derive optimal financial aid formulas in a general model. We estimate a model of selection into college for the United States that comprises multidimensional heterogeneity, endogenous parental transfers, dropout, labor supply in college, and uncertain returns. We quantify optimal financial aid in the estimated model and find it is strongly declining in parental income even without distributional concerns. Equity and efficiency go hand in hand.
Bibliography Citation
Colas, Mark, Sebastian Findeisen and Dominik Sachs. "Optimal Need-Based Financial Aid." Journal of Political Economy published online (30 September 2020): DOI: 10.1086/711952.