College Risk and Return
Review of Economic Dynamics
Author: Gonzalo Castex - Central Bank of Chile
gcastex@bcentral.cl


Matlab code. Software version 2016a
CRR_RED2017.m

Expected computation time: 4 minutes
This code computes enrollment rate by ability and family income.
To compute risk premium, you have to shut down the dropout risk first, see line 187
After computing enrollment rates when there is no risk, you have to adjust the college premium, see lines 287-305
If you want to perform policy experiments, see lines 451 (college premium); 218 (tuition); 279 (grants).
auxiliary file: measure2.txt

Stata Code. Software version 14.0
There are several pieces of data.
Before running a stata code please change the directory path accordingly.
1. sum_stats.do
Generates summary statistics and enrollment rates by individual types.
2. parental.do
Estimates parental transfers
3. earnings.do
Estimate earnings equation and summarize average earnings by educ level