Equilibrium Price Responses to Targeted Student Financial Aid

We are grateful to Caroline Hoxby, Rebecca Diamond, Melanie Morten, Isaac Sorkin, and Constantine Yannelis for their invaluable guidance and support throughout this project. We also thank Claudia Allende, Luis Armona, Michael Best, Sandra Black, Arun Chandrasekhar, Pascaline Dupas, Liran Einav, Marcel Fafchamps, Matthew Gentzkow, Neale Mahoney, Nathan Miller, and Lesley Turner for their insightful comments and suggestions. We benefited greatly from discussions at the NBER Summer Institute, the Barcelona School of Economics Summer Forum, and the Econometric Society Summer and Winter Meetings, as well as from seminar participants at Stanford University, the University of Chicago, Yale University, Georgetown University, the World Bank, Center for Monetary and Financial Studies (CEMFI), Institute for Fiscal Studies, Toulouse School of Economics, Einaudi Institute for Economics and Finance, Pompeu Fabra University, Fundação Getulio Vargas Rio de Janeiro (FGV-RJ) and São Paulo (FGV-SP), Pontifical Catholic University of Rio de Janeiro (PUC-RJ), and Federal University of Paraíba (UFPB). We gratefully acknowledge financial support from the Stanford King Center on Global Development, the Stanford Center for Computational Social Sciences, the Stanford Institute for Economic Policy Research (SIEPR), the Haley-Shaw Dissertation Fellowship, the NAEd/Spencer Dissertation Fellowship Program, and the Georgetown Center for Economic Research (GCER). Any remaining errors are our own. The views expressed herein are those of the authors and do not necessarily reflect the views of the National Bureau of Economic Research.

• May 21, 2025