TY  - JOUR
AU  - Nielsen, Helena Skyt
AU  - Sørensen, Torben
AU  - Taber, Christopher R
TI  - Estimating the Effect of Student Aid on College Enrollment: Evidence from a Government Grant Policy Reform
JF  - National Bureau of Economic Research Working Paper Series
VL  - No. 14535
PY  - 2008
Y2  - December 2008
DO  - 10.3386/w14535
UR  - http://www.nber.org/papers/w14535
L1  - http://www.nber.org/papers/w14535.pdf
N1  - Author contact info:
Helena Skyt Nielsen
Aarhus University
Fuglesangs Alle 4
DK8210 Aarhus V
Denmark
Tel: +4529216971
E-Mail: hnielsen@econ.au.dk

Torben Sorensen
Dept. of Economics, University of Aarhus
Bartholins Alle 4, Bld. 322
DK-8000, Aarhus C
E-Mail: tosoerensen@econ.dk

Christopher R. Taber
Department of Economics
University of Wisconsin -Madison
1180 Observatory Dr
Social Sciences Building #6448
Madison, WI 53706-1320
Tel: (608) 263-7791
Fax: (608) 262-2033
E-Mail: ctaber@ssc.wisc.edu
M1  - published as Helena Skyt Nielsen, Torben Sørensen, Christopher Taber. "Estimating the Effect of Student Aid on College Enrollment: Evidence from a Government Grant Policy Reform," in Roger Gordon and Thomas Piketty, organizers, "Income Taxation, Trans-Atlantic Public Economics Seminar (TAPES)" American Economic Journal: Economic Policy, 2(2), May 2010 (2010)

AB  - In this paper, we investigate the responsiveness of the demand for college to changes in student aid arising from a Danish reform. We separately identify the effect of aid from that of other observed and unobserved variables such as parental income. We exploit the combination of a kinked aid scheme and a reform of the student aid scheme to identify the effect of direct costs on college enrollment. To allow for heterogeneous responses due to borrowing constraints, we use detailed information on parents' assets. We find that enrollment is less responsive than found in other studies and that the presence of borrowing constraints only deters college enrollment to a minor extent.
ER  -