TY  - UNPD
A1  - Hendricks, Lutz
A1  - Leukhina, Oksana
T1  - How risky is college investment?
T2  - Center for Financial Studies (Frankfurt am Main): CFS working paper series ; No. 502
N2  - This paper is motivated by the fact that nearly half of U.S. college students drop out without earning a bachelor’s degree. Its objective is to quantify how much uncertainty college entrants face about their graduation outcomes. To do so, we develop a quantitative model of college choice. The innovation is to model in detail how students progress towards a college degree. The model is calibrated using transcript and financial data. We find that more than half of college entrants can predict whether they will graduate with at least 80% probability. As a result, stylized policies that insure students against the financial risks associated with uncertain graduation have little value for the majority of college entrants.
T3  - CFS working paper series - 502 
Y1  - 2015
UR  - http://publikationen.ub.uni-frankfurt.de/frontdoor/index/index/docId/37016
UR  - https://nbn-resolving.org/urn:nbn:de:hebis:30:3-370162
UR  - http://ssrn.com/abstract=2560194
IS  - January 30, 2015
EP  - 46
PB  - Center for Financial Studies
CY  - Frankfurt, M.
ER  -