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Deduction Dilemmas: The Taiwan Assignment Mechanism

Umut M. Dur, Parag A. Pathak, Fei Song, Tayfun Sönmez

NBER Working Paper No. 25024
Issued in September 2018
NBER Program(s):Economics of Education, Labor Studies

This paper analyzes the properties of the Taiwan mechanism, used for high school placement nationwide starting in 2014. In the Taiwan mechanism, points are deducted from an applicant's score with larger penalties for lower ranked choices. Deduction makes the mechanism a new hybrid between the well-known Boston and deferred acceptance mechanisms. Our analysis sheds light on why Taiwan's new mechanism has led to massive nationwide demonstrations and why it nonetheless still remains in use.

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Document Object Identifier (DOI): 10.3386/w25024

 
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