Replication data for: Borrowing Trouble? Human Capital Investment with Opt-In Costs and Implications for the Effectiveness of Grant Aid
- Marx, Benjamin M.
- Turner, Lesley J.
AbstractWe estimate the effect of grant aid on City University of New York (CUNY) students' borrowing and attainment using a regression discontinuity/kink design based on the federal Pell Grant formula. Each dollar of grant aid reduces loans by $1.80 among borrowers. We only find crowd-out of this magnitude in colleges that, like CUNY, "offer" no loan aid and require students to opt into borrowing. We develop and empirically support a model that shows opt-in or other fixed borrowing costs can lead grants to crowd out large amounts of loan aid, lowering some students attainment by reducing their liquid resources.
Is supplement to
DOI: 10.1257/app.20160127 (Text)
Marx, Benjamin M., and Lesley J. Turner. “Borrowing Trouble? Human Capital Investment with Opt-In Costs and Implications for the Effectiveness of Grant Aid.” American Economic Journal: Applied Economics 10, no. 2 (April 2018): 163–201. https://doi.org/10.1257/app.20160127.
- ID: 10.1257/app.20160127 (DOI)
Update Metadata: 2020-05-18 | Issue Number: 3 | Registration Date: 2019-12-07