ProPelled: The Effects of Grants on Graduation, Earnings, and Welfare / Jeffrey T. Denning, Benjamin M. Marx, Lesley J. Turner.

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Denning, Jeffrey T

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Material type: Text

TextSeries: Working Paper Series (National Bureau of Economic Research) ; no. w23860.Publication details: Cambridge, Mass. National Bureau of Economic Research 2017.Description: 1 online resource: illustrations (black and white)Subject(s):

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Abstract: We estimate effects of the largest U.S. federal grant for college students using administrative data from Texas four-year public colleges and a discontinuity in grant generosity. Eligibility for additional grant aid significantly increases degree receipt and earnings beginning four years after entry. Estimated increases in income tax payments fully recoup government expenditures within ten years. A theoretical model shows that welfare effects of changes in college prices depend on (1) externalities from recipients' behavioral responses and (2) facilitation of intertemporal consumption smoothing. Calibration suggests that increasing grant aid for low-income college students would enhance welfare in many U.S. settings.

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Item type	Home library	Collection	Call number	Status	Date due	Barcode	Item holds
Working Paper	Biblioteca Digital	Colección NBER	nber w23860 (Browse shelf(Opens below))	Not For Loan

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September 2017.

We estimate effects of the largest U.S. federal grant for college students using administrative data from Texas four-year public colleges and a discontinuity in grant generosity. Eligibility for additional grant aid significantly increases degree receipt and earnings beginning four years after entry. Estimated increases in income tax payments fully recoup government expenditures within ten years. A theoretical model shows that welfare effects of changes in college prices depend on (1) externalities from recipients' behavioral responses and (2) facilitation of intertemporal consumption smoothing. Calibration suggests that increasing grant aid for low-income college students would enhance welfare in many U.S. settings.