Working Papers

 (with William Mann)
revise and resubmit at Review of Financial Studies

Abstract: We estimate small marginal costs and large markups at private colleges in the United States, and discuss implications for the design of financial aid. For identification, we exploit a tightening of credit standards in the PLUS loan program, which decreased enrollment, revenues, and expenditures at private colleges with low-income students. We estimate that markups represented more than half of charges for students disqualified by the change. Markups were higher at for-profit schools, and in states with fewer public schools and lower education spending. Our results complement prior evidence on the Bennett Hypothesis, and contrast prior estimates of small markups.

Work in Progress

The Role of Heterogeneous Intermediaries in Asset Prices and the Macroeconomy

Predictive Regressions: A Pricing-Kernel Approach (with Mikhail Chernov)