Andrabi, T., Das, J., Khwaja, A.I. and Singh, N. <br/><br/>
Upping the ante: The equilibrium effects of unconditional grants to private schools 

 - The American Economic Review   
 - 110(10), Oct, 2020: p.3315-3349 
<br/><br/> We assess whether financing can help private schools, which now account for one-third of primary school enrollment in low- and middle-income countries. Our experiment allocated unconditional cash grants to either one (L) or all (H) private schools in a village. In both arms, enrollment and revenues increased, leading to above- market returns. However, test scores increased only in H schools, accompanied by higher fees, and a greater focus on teachers. We provide a model demonstrating that market forces can provide endogenous incentives to increase quality and increased financial saturation can be used to leverage competition, generating socially desirable outcomes. – Reproduced