Replication data for: Liquidity Constraints, Fiscal Externalities, and Optimal Tuition Subsidies

Principal Investigator(s): View help for Principal Investigator(s) Nicholas Lawson

Name	File Type	Size	Last Modified
Lawson_AEJPol-2015-0079_Data			10/13/2019 04:04:AM
LICENSE.txt	text/plain	14.6 KB	10/13/2019 12:04:AM

Project Citation:

Lawson, Nicholas. Replication data for: Liquidity Constraints, Fiscal Externalities, and Optimal Tuition Subsidies. Nashville, TN: American Economic Association [publisher], 2017. Ann Arbor, MI: Inter-university Consortium for Political and Social Research [distributor], 2019-10-13. https://doi.org/10.3886/E114633V1

Project Description

Summary: A large literature focuses on two important rationales for government subsidies to college students: positive fiscal externalities from a larger tax base, and liquidity constraints. This paper provides a first attempt to gauge the relative importance of these mechanisms. I use US data in combination with two modeling approaches: calibration of a simple structural model of human capital accumulation, and a "sufficient statistics" approach. The resulting optimal subsidies are larger than median public tuition by about $3,000 per year. This finding is driven by fiscal externalities; optimal tuition subsidy policy is not sensitive to the extent of liquidity constraints.

Scope of Project

JEL Classification:
      H52 National Government Expenditures and Education
      H75 State and Local Government: Health; Education; Welfare; Public Pensions
      I22 Educational Finance; Financial Aid
      I23 Higher Education; Research Institutions
      I28 Education: Government Policy

Related Publications

Download this project

Published Versions

V1 [2019-10-13]

Export Metadata

Dublin Core

DDI 2.5

Report a Problem

Found a serious problem with the data, such as disclosure risk or copyrighted content? Let us know.

This material is distributed exactly as received from the data depositor. As of April 2026, depositors are required to submit study materials in accessible formats. ICPSR has not reviewed, checked, or processed this material. For additional information about the study, please contact the investigator(s) directly. If you have questions about the accessibility of materials distributed by ICPSR or require further assistance, please visit ICPSR's Accessibility Center.