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Parental Preferences and School Competition: Evidence from a Public School Choice Program

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TLDR
This article used data from the implementation of a districtwide public school choice plan in Mecklenburg County, North Carolina to estimate preferences for school characteristics and examine their implications for the local educational market.
Abstract
This paper uses data from the implementation of a district-wide public school choice plan in Mecklenburg County, North Carolina to estimate preferences for school characteristics and examine their implications for the local educational market. We use parental rankings of their top three choices of schools matched with student demographic and test score data to estimate a mixed-logit discrete choice demand model for schools. We find that parents value proximity highly and the preference attached to a school's mean test score increases with student's income and own academic ability. We also find considerable heterogeneity in preferences even after controlling for income, academic achievement and race, with strong negative correlations between preferences for academics and school proximity. Simulations of parental responses to test score improvements at a school suggest that the demand response at high-performing schools would be larger than the response at low-performing schools, leading to disparate demand-side pressure to improve performance under school choice.

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References
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Book

Discrete Choice Methods with Simulation

TL;DR: In this paper, the authors describe the new generation of discrete choice methods, focusing on the many advances that are made possible by simulation, and compare simulation-assisted estimation procedures, including maximum simulated likelihood, method of simulated moments, and methods of simulated scores.
Journal ArticleDOI

Automobile prices in market equilibrium

TL;DR: In this article, the authors developed techniques for empirically analyzing demand and supply in differentiated products markets and then applied these techniques to analyze equilibrium in the U.S. automobile industry.
Journal ArticleDOI

Dynamic models of segregation

TL;DR: The systemic effects are found to be overwhelming: there is no simple correspondence of individual incentive to collective results, and a general theory of ‘tipping’ begins to emerge.
Book

Discrete Choice Theory of Product Differentiation

TL;DR: This important study shows that an understanding of product differentiation is crucial to understanding how modern market economies function and that differentiated markets can be analyzed using discrete choice models of consumer behavior.
Journal ArticleDOI

Learning in Extensive-Form Games: Experimental Data and Simple Dynamic Models in the Intermediate Term*

TL;DR: In this article, the authors use simple learning models to track the behavior observed in experiments concerning three extensive form games with similar perfect equilibria, and they argue that for predicting observed behavior the intermediate term predictions of dynamic learning models may be even more important than their asymptotic properties.
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