Lotteries in student assignment: An equivalence result

This paper formally examines two competing methods of conducting a lottery in assigning students to schools, motivated by the design of the centralized high school student assignment system in New York City. The main result of the paper is that a single and multiple lottery mechanism are equivalent for the problem of allocating students to schools in which students have strict preferences and the schools are indifferent. In proving this result, a new approach is introduced, that simplifies and unifies all the known equivalence results in the house allocation literature. Along the way, two new mechanisms---Partitioned Random Priority and Partitioned Random Endowment---are introduced for the house allocation problem. These mechanisms generalize widely studied mechanisms for the house allocation problem and may be appropriate for the many-to-one setting such as the school choice problem.Matching, random assignment

Short Interest and Stock Returns

Using a longer time period and both NYSE-Amex and Nasdaq stocks, this paper examines short interest and stock returns in more detail than any previous study and finds that many documented patterns are not robust. While equally weighted high short interest portfolios generally underperform, value weighted portfolios do not. In addition, there is a negative correlation between market returns and short interest over our whole period. Finally, inferences from short time periods, such as 1988-1994 when the underperformance of high short interest stocks was exceptional or 1995-2002, when high short interest Nasdaq stocks did not underperform, are misleading.

The New York City High School Match

Economic

Charter Schools and the Road to College Readiness: The Effects on College Preparation, Attendance and Choice

The analysis here focuses on Boston's charter high schools. For the purpose of this report, an analysis of high schools is both a necessity and a virtue. It is necessary to study high schools because most students applying to charters in earlier grades are not yet old enough to generate data on postsecondary outcomes. Charter high schools are also of substantial policy interest: a growing body of research argues that high school may be too late for cost-effective human capital interventions. Indeed, impact analyses of interventions for urban youth have mostly generated disappointing results.This report is interested in ascertaining whether charter schools, which in Massachusetts are largely budget-neutral, can have a substantial impact on the life course of affected students. The set of schools studied here comes from an earlier investigation of the effects of charter attendance in Boston on test scores.The high schools from the earlier study, which enroll the bulk of charter high school students in Boston, generate statistically and socially significant gains on state assessments in the 10th grade. This report questions whether these gains are sustained

Housing Market Spillovers: Evidence from the End of Rent Control in Cambridge Massachusetts

Understanding potential spillovers from the attributes and actions of neighborhood residents onto the value of surrounding properties and neighborhoods is central to both the theory of urban economics and the development of efficient housing policy. This paper measures the capitalization of housing market spillovers by studying the sudden and largely unanticipated 1995 elimination of stringent rent controls in Cambridge, Massachusetts that had previously muted landlords’ investment incentives and altered the assignment of residents to locations. Pooling administrative data on the assessed values of each residential property and the prices and characteristics of all residential transactions between 1988 and 2005, we find that rent control’s removal produced large, positive, and robust spillovers onto the price of never-controlled housing from nearby decontrolled units. Elimination of rent control added about $1.8 billion to the value of Cambridge’s housing stock between 1994 and 2004, equal to nearly a quarter of total Cambridge residential price appreciation in this period. Positive spillovers to never-controlled properties account for more half of the induced price appreciation. Residential investments can explain only a small fraction of the total

Who Benefits from KIPP?

The nation's largest charter management organization is the Knowledge is Power Program (KIPP). KIPP schools are emblematic of the No Excuses approach to public education, a highly standardized and widely replicated charter model that features a long school day, an extended school year, selective teacher hiring, strict behavior norms, and a focus on traditional reading and math skills. No Excuses charter schools are sometimes said to focus on relatively motivated high achievers at the expense of students who are most diffiult to teach, including limited English proficiency (LEP) and special education (SPED) students, as well as students with low baseline achievement levels. We use applicant lotteries to evaluate the impact of KIPP Academy Lynn, a KIPP school in Lynn, Massachusetts that typifies the KIPP approach. Our analysis focuses on special needs students that may be underserved. The results show average achievement gains of 0.36 standard deviations in math and 0.12 standard deviations in reading for each year spent at KIPP Lynn, with the largest gains coming from the LEP, SPED, and low-achievement groups. The average reading gains are driven almost completely by SPED and LEP students, whose reading scores rise by roughly 0.35 standard deviations for each year spent at KIPP Lynn.human capital, charter schools, achievement

The elite illusion: Achievement effects at Boston and New York exam schools

Parents gauge school quality in part by the level of student achievement and a school's racial mix. The importance of school characteristics in the housing market can be seen in the jump in house prices at school district boundaries where peer characteristics change. The question of whether schools with more attractive peers are really better in a value-added sense remains open, however. This paper uses a fuzzy regression-discontinuity design to evaluate the causal effects of peer characteristics. Our design exploits admissions cutoffs for Boston and New York City's heavily over-subscribed exam schools. Successful applicants near admissions cutoffs for the least selective of these schools move from schools with scores near the bottom of the state SAT score distribution to a school with scores near the median. Successful applicants near admissions cutoffs for the most selective of these schools move from above-average schools to schools with students drawn from the extreme upper tail. Exam school students can also expect to study with fewer nonwhite classmates than unsuccessful applicants. Our estimates suggest that the marked changes in peer characteristics at exam school admissions cutoffs have little causal effect on test scores or college quality