The effect of six year subsidizing primary schools in poor neighborhoods

This paper exploits the effect of 6 years of subsidy provided to primary schools located in so called impulse areas. The strict criteria of impulse areas created an ideal setting for a regression discontinuity design. The paper finds evidence that the subsidy increased the funding per student and reduced the class size of schools located in impulse areas. However there is not any significant evidence found that the subsidy improved the performance of students in their final year of primary school on a nationwide exam.