NATIONAL BUREAU OF ECONOMIC RESEARCH
NATIONAL BUREAU OF ECONOMIC RESEARCH
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Chao Fu

Department of Economics
University of Wisconsin - Madison
1180 Observatory Drive
Madison, WI 53706
Tel: 608/263-3886

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NBER Program Affiliations: LS
NBER Affiliation: Research Associate

NBER Working Papers and Publications

May 2018Structural Estimation of a Model of School Choices: the Boston Mechanism vs. Its Alternatives
with Caterina Calsamglia, Maia G├╝ell: w24588
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 administrative 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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