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Does price matter? Overseas students in UK higher education

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  • Soo, Kwok Tong
  • Elliott, Caroline

Abstract

This paper explores the determinants of the choice of UK universities by overseas undergraduate applicants. We use data on overseas applicants in Business Studies and Engineering from 2002 to 2007, to 97 UK universities. Estimating using a Hausman-Taylor model to control for the possible correlation between our explanatory variables and unobservable university-level effects, we find that the fees charged may influence the application decision of some students, but that any relationship between levels of fees and applications is non-linear. The quality of education provided is positively and significantly related to the number of applications. Proximity to London and the existing popularity of a university among home applicants, are also significant predictors of university applications.

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Bibliographic Info

Article provided by Elsevier in its journal Economics of Education Review.

Volume (Year): 29 (2010)
Issue (Month): 4 (August)
Pages: 553-565

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Handle: RePEc:eee:ecoedu:v:29:y:2010:i:4:p:553-565

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Web page: http://www.elsevier.com/locate/econedurev

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Keywords: UK universities Demand estimation Overseas students;

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  1. Hausman, Jerry A. & Taylor, William E., 1981. "Panel data and unobservable individual effects," Journal of Econometrics, Elsevier, vol. 16(1), pages 155-155, May.
  2. Andrew Abbott & Derek Leslie, 2004. "Recent Trends in Higher Education Applications and Acceptances," Education Economics, Taylor & Francis Journals, vol. 12(1), pages 67-86.
  3. Hausman, Jerry A, 1978. "Specification Tests in Econometrics," Econometrica, Econometric Society, vol. 46(6), pages 1251-71, November.
  4. Christopher F Baum & Mark E. Schaffer & Steven Stillman, 2002. "Instrumental variables and GMM: Estimation and testing," United Kingdom Stata Users' Group Meetings 2003 02, Stata Users Group.
  5. Caves, Richard E. & Greene, David P., 1996. "Brands' quality levels, prices, and advertising outlays: empirical evidence on signals and information costs," International Journal of Industrial Organization, Elsevier, vol. 14(1), pages 29-52.
  6. Baltagi, Badi H. & Bresson, Georges & Pirotte, Alain, 2003. "Fixed effects, random effects or Hausman-Taylor?: A pretest estimator," Economics Letters, Elsevier, vol. 79(3), pages 361-369, June.
  7. Fluet, Claude & Garella, Paolo G., 2002. "Advertising and prices as signals of quality in a regime of price rivalry," International Journal of Industrial Organization, Elsevier, vol. 20(7), pages 907-930, September.
  8. Milgrom, Paul & Roberts, John, 1986. "Price and Advertising Signals of Product Quality," Journal of Political Economy, University of Chicago Press, vol. 94(4), pages 796-821, August.
  9. Hansen, Lars Peter, 1982. "Large Sample Properties of Generalized Method of Moments Estimators," Econometrica, Econometric Society, vol. 50(4), pages 1029-54, July.
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Cited by:
  1. repec:lan:wpaper:3056 is not listed on IDEAS
  2. Gabriele Marconi, 2013. "Rankings, accreditations, and international exchange students," IZA Journal of European Labor Studies, Springer, vol. 2(1), pages 1-22, December.
  3. Zheng, Ping, 2014. "Antecedents to international student inflows to UK higher education: A comparative analysis," Journal of Business Research, Elsevier, vol. 67(2), pages 136-143.
  4. Caruso, Raul & de Wit, Hans, 2013. "Determinants of Mobility of Students in Europe: a preliminary quantitative study," MPRA Paper 49808, University Library of Munich, Germany.
  5. Philip Wales, 2013. "Access All Areas? The Impact of Fees and Background on Student Demand for Postgraduate Higher Education in the UK," SERC Discussion Papers 0128, Spatial Economics Research Centre, LSE.
  6. K T Soo, 2009. "Estimating the production function of university students," Working Papers 600466, Lancaster University Management School, Economics Department.
  7. Elliott, Caroline & Soo, Kwok Tong, 2013. "The international market for MBA qualifications: The relationship between tuition fees and applications," Economics of Education Review, Elsevier, vol. 34(C), pages 162-174.
  8. Stephen Gibbons & Eric Neumayer & Richard Perkins, 2013. "Student Satisfaction, League Tables and University Applications," SERC Discussion Papers 0142, Spatial Economics Research Centre, LSE.
  9. Caroline Elliott & Kwok Tong Soo, 2012. "The International Market for MBA Qualifications," Working Papers 24284581, Lancaster University Management School, Economics Department.
  10. repec:lan:wpaper:3335 is not listed on IDEAS

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