Groote Lab

Toulouse School of Economics - Jean-Jacques Laffont Foundation

Occitanie (FRJ) · France

ERC-funded
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Research focus

ERC Starting Grant · 2024

Add in choice: optimizing students' dynamic and interdependent decisions

The diversity of educational opportunities has the potential to improve the situation of everyone by providing an environment, adapted to the needs and goals of all. Letting parents or students choose their trajectory can improve welfare as it allows them to sort into the right program, using their private information on comparative advantages and preferences. However, personal choices are not necessarily in line with society’s objectives because of externalities. Apart from financial externalities that are inevitable in subsidized educational systems, peer effects are crucial in this context as the student composition of an educational program affects its quality. Furthermore, from an…

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