Code for: Opportunity Unraveled: Private Information and the Missing Markets for Financing Human Capital

We argue adverse selection has unraveled private markets for financial contracts that mitigate college-going risks. We use survey data on beliefs to quantify the threat of adverse selection in markets for equity contracts and several state-contingent debt contracts. We estimate that a typical college-goer would have to repay $1.64 in present value for every $1 of equity financing to sustain profitable contracts for financiers, more than they are willing to accept. We discuss why moral hazard, biased beliefs, and the availability of outside credit options are less likely to explain the absence of these markets, and discuss the welfare implications.<br>