Estimating the Value of Higher Education Financial Aid
Evidence from a Field Experiment
Bibliographic Data
| ID | 19081351 |
|---|---|
| Authors | Christian Belzil (corresponding author), Arnaud Maurel, Modibo Sidibé |
| Year | 2017 |
| Publication date | 2017-08-01 |
| Peer Reviewed | Yes |
| Open Access | No |
| Type | REPORT |
| Venue | National Bureau of Economic Research (REPOSITORY) |
| Publisher | National Bureau of Economic Research (PUBLISHER) |
| DOI | 10.3386/w23641 |
| OpenAlex | W3124506063 |
| Language | EN |
| References cited | 4 |
Using data from a Canadian field experiment on the financial barriers to higher education, we estimate the distribution of the value of financial aid for prospective students, and relate it to parental socio-economic background, individual skills, risk and time preferences. Our results point out that a considerable share of prospective students are affected by credit constraints. We find that most of the individuals are willing to pay a sizable interest premium above the prevailing market rate for the option to take up a loan, with a median interest rate wedge equal to 6.6 percentage points for a $1,000 loan. The willingness-to-pay for financial aid is highly heterogeneous across students, with preferences and in particular discount factors, playing a key role in accounting for this variation
Econometrics · Economics · Statistics · Economic Policies and Impacts · Financial Literacy, Pension, Retirement Analysis · Fiscal Policy and Economic Growth · Mathematics
| Citation velocity | historical |
|---|---|
| Highly cited | No |