Crowding in private quality: The equilibrium effects of public spending in education
We estimate the equilibrium effects of a public school grant program administered through school councils in Pakistani villages with multiple public and private schools and clearly defined catchment boundaries. The program was randomized at the village level, allowing us to estimate its causal impac...
| Autores principales: | , , , , |
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| Formato: | Journal Article |
| Lenguaje: | Inglés |
| Publicado: |
Oxford University Press
2024
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| Materias: | |
| Acceso en línea: | https://hdl.handle.net/10568/158173 |
| _version_ | 1855541549291536384 |
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| author | Andrabi, Tahir Bau, Natalie Das, Jishnu Karachiwalla, Naureen Khwaja, Asim Ijaz |
| author_browse | Andrabi, Tahir Bau, Natalie Das, Jishnu Karachiwalla, Naureen Khwaja, Asim Ijaz |
| author_facet | Andrabi, Tahir Bau, Natalie Das, Jishnu Karachiwalla, Naureen Khwaja, Asim Ijaz |
| author_sort | Andrabi, Tahir |
| collection | Repository of Agricultural Research Outputs (CGSpace) |
| description | We estimate the equilibrium effects of a public school grant program administered through school councils in Pakistani villages with multiple public and private schools and clearly defined catchment boundaries. The program was randomized at the village level, allowing us to estimate its causal impact on the market. Four years after the start of the program, test scores were 0.2 standard deviations higher in public schools. We find evidence of an education multiplier: test scores in private schools were also 0.2 standard deviations higher in treated markets. Consistent with standard models of product differentiation, the education multiplier is greater for those private schools that faced a greater threat to their market power. Accounting for private sector responses increases the program’s cost-effectiveness by 85% and affects how a policy maker would target spending. Given that markets with several public and private schools are now pervasive in low- and middle-income countries, prudent policy requires us to account for private sector responses to public policy, both in policies’ design and evaluation. |
| format | Journal Article |
| id | CGSpace158173 |
| institution | CGIAR Consortium |
| language | Inglés |
| publishDate | 2024 |
| publishDateRange | 2024 |
| publishDateSort | 2024 |
| publisher | Oxford University Press |
| publisherStr | Oxford University Press |
| record_format | dspace |
| spelling | CGSpace1581732025-10-26T12:50:57Z Crowding in private quality: The equilibrium effects of public spending in education Andrabi, Tahir Bau, Natalie Das, Jishnu Karachiwalla, Naureen Khwaja, Asim Ijaz education equilibrium markets schools We estimate the equilibrium effects of a public school grant program administered through school councils in Pakistani villages with multiple public and private schools and clearly defined catchment boundaries. The program was randomized at the village level, allowing us to estimate its causal impact on the market. Four years after the start of the program, test scores were 0.2 standard deviations higher in public schools. We find evidence of an education multiplier: test scores in private schools were also 0.2 standard deviations higher in treated markets. Consistent with standard models of product differentiation, the education multiplier is greater for those private schools that faced a greater threat to their market power. Accounting for private sector responses increases the program’s cost-effectiveness by 85% and affects how a policy maker would target spending. Given that markets with several public and private schools are now pervasive in low- and middle-income countries, prudent policy requires us to account for private sector responses to public policy, both in policies’ design and evaluation. 2024-10-09 2024-10-25T14:35:03Z 2024-10-25T14:35:03Z Journal Article https://hdl.handle.net/10568/158173 en https://www.nber.org/papers/w30929 Limited Access Oxford University Press Andrabi, Tahir; Bau, Natalie; Das, Jishnu; Karachiwalla, Naureen; and Khwaja, Asim Ijaz.2024. Crowding in private quality: The equilibrium effects of public spending in education. Quarterly Journal of Economics 139(4): 2525–2577. https://doi.org/10.1093/qje/qjae014 |
| spellingShingle | education equilibrium markets schools Andrabi, Tahir Bau, Natalie Das, Jishnu Karachiwalla, Naureen Khwaja, Asim Ijaz Crowding in private quality: The equilibrium effects of public spending in education |
| title | Crowding in private quality: The equilibrium effects of public spending in education |
| title_full | Crowding in private quality: The equilibrium effects of public spending in education |
| title_fullStr | Crowding in private quality: The equilibrium effects of public spending in education |
| title_full_unstemmed | Crowding in private quality: The equilibrium effects of public spending in education |
| title_short | Crowding in private quality: The equilibrium effects of public spending in education |
| title_sort | crowding in private quality the equilibrium effects of public spending in education |
| topic | education equilibrium markets schools |
| url | https://hdl.handle.net/10568/158173 |
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