The Causal Effect of Studying on Academic Performance

Despite the large amount of attention that has been paid recently to understanding the determinants of educational outcomes, knowledge of the causal effect of the most fundamental input in the education production function - students' study time and effort - has remained virtually non-existent. In this paper, we examine the causal effect of studying on grade performance using an Instrumental Variable estimator. Our approach takes advantage of a unique natural experiment and is possible because we have collected unique longitudinal data that provides detailed information about all aspects of this experiment. Important for understanding the potential impact of a wide array of education policies, the results suggest that human capital accumulation is far from predetermined at the time of college entrance