A model is presented where universities competitively supply education to mobile students. Students are subject to a …-related debt relief, however, the equilibrium quality of education is inefficiently low. This is because students reduce their …

We use rich microeconomic data on performance and choices of students at college entry to study the interaction between … which preferences and expectations of students are identified from data on choices and multiple exam grades. Counterfactuals … timing of choices and exams are shown to increase welfare. Redistribution among students or schools is sizeable in all …