Optimal Need-Based Financial Aid
研究了学生助学金如何随父母收入最优调整，基于美国大学入学选择模型量化发现助学金随父母收入递减，且公平与效率可兼得。
We study the optimal design of student financial aid as a function of parental income. We derive optimal financial aid formulas in a general model. We estimate a model of selection into college for the United States that comprises multidimensional heterogeneity, endogenous parental transfers, dropout, labor supply in college, and uncertain returns. We quantify optimal financial aid in the estimated model and find it is strongly declining in parental income even without distributional concerns. Equity and efficiency go hand in hand.