Using Maimonides' rule to estimate the effect of class size on scholastic achievement

The twelfth century rabbinic scholar Maimonides proposed a maximum class si ze of 40. This same maximum induces a nonlinear and nonmonotonic relationsh ip between grade enrollment and class size in Israeli public schools today. Maimonides' rule of 40 is used here to construct instrumental variables es timates of effects of class size on test scores. The resulting identificati on strategy can be viewed as an application of Donald Campbell's regression -discontinuity design to the class-size question. The estimates show that r educing class size induces a significant and substantial increase in test s cores for fourth and fifth graders, although not for third graders.