Veronica Frisancho, Kala Krishna, Sergey Lychagin
(forthcoming in the International Economic Review)
Placement, both in university and in the civil service, according to performance in competitive exams is the norm in much of the world. Repeat taking of such exams is common despite the private and social costs it imposes. We develop and estimate a structural model of exam retaking using data from Turkey's university placement exam. We find that limiting retaking, though individually harmful given the equilibrium, actually increases expected welfare across the board. This result comes from a general equilibrium effect: retakers crowd the market and impose negative spillovers on others by raising acceptance cutoffs.
Sergey Lychagin, 2016, Journal of Urban Economics, vol. 96.
Sergey Lychagin, Joris Pinkse, Margaret Slade, and John Van Reenen, 2016, Journal of Industrial Economics, vol. 64, No. 2.
Veronica Frisancho, Kala Krishna, Sergey Lychagin, and Cemile Yavas, 2016, Journal of Economic Behavior & Organization, vol. 125.
Sanghamitra Das, Kala Krishna, Sergey Lychagin, and Rohini Somanathan, 2013, AEJ Applied, vol. 5, No. 1.