Tag

welfare_economics

2 cards

Economics (general)Expert Theory
Heterogeneous Peer Preference Sorting
Demonstrates that under heterogeneous student preferences across curricula (such as commercial versus academic/industrial tracks), student sorting increases average aggregate utility without imposing negative peer externalities on non-participants.
Economics (general)Expert Theory
Linear-in-Means Peer Externalities Model
The theoretical framework demonstrates that under linear-in-means peer assumptions, student re-sorting does not alter aggregate population test scores ($\bar{Y} = \beta_0 \bar{X} + \beta_1 \bar{X}$); individual gains are strictly offset by losses to non-participants unless $\beta_2 > 0$.