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College Cost and Time to Complete a Degree: Evidence from Tuition Discontinuities

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Author Info
Pietro Garibaldi
Francesco Giavazzi
Andrea Ichino
Enrico Rettore

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Abstract

For many students throughout the world the time to obtain an academic degree extends beyond the normal completion time while college tuition is typically constant during the years of enrollment. In particular, it does not increase when a student remains in a program beyond the normal completion time. Using a Regression Discontinuity Design on data from Bocconi University in Italy, this paper shows that a tuition increase of 1,000 euro in the last year of studies would reduce the probability of late graduation by 6.1 percentage points with respect to a benchmark average probability of 80%. We conclude suggesting that an upward sloping tuition profile is efficient in situations in which effort is suboptimally supplied, for instance in the presence of public subsidies to education, congestion externalities and/or peer effects.

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Paper provided by Collegio Carlo Alberto in its series Carlo Alberto Notebooks with number 38.

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Length: 64 pages
Date of creation: 2007
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Handle: RePEc:cca:wpaper:38

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Related research
Keywords: tuition; student performance; regression discontinuity.;

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Find related papers by JEL classification:
I2 - Health, Education, and Welfare - - Education
C31 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Cross-Sectional Models; Spatial Models; Treatment Effect Models

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  1. Billari, Francesco C. & Pellizzari, Michele, 2008. "The Younger, the Better? Relative Age Effects at University," IZA Discussion Papers 3795, Institute for the Study of Labor (IZA). [Downloadable!]
  2. Joshua Goodman, 2007. "Who merits financial aid? Massachusetts? Adams scholarship," Discussion Papers 0607-13, Columbia University, Department of Economics. [Downloadable!]
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  3. Paolo Ghirardato & Fabio Maccheroni & Massimo Marinacci, 2007. "Revealed Ambiguity and Its Consequences: Updating," Carlo Alberto Notebooks 44, Collegio Carlo Alberto. [Downloadable!]
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  5. Joshua Angrist & Daniel Lang & Philip Oreopoulos, 2007. "Incentives and Services for College Achievement: Evidence from a Randomized Trial," IZA Discussion Papers 3134, Institute for the Study of Labor (IZA). [Downloadable!]
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  6. Esteban Jaimovich, 2008. "Adverse Selection and Entrepreneurship in a Model of Development," Carlo Alberto Notebooks 78, Collegio Carlo Alberto. [Downloadable!]
  7. Decio Coviello & Mario Mariniello, 2008. "Does Publicity Affect Competition? Evidence from Discontinuities in Public Procurement Auctions," CSEF Working Papers 189, Centre for Studies in Economics and Finance (CSEF), University of Naples, Italy. [Downloadable!]
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  8. Jason M. Lindo & Nicholas J. Sanders & Philip Oreopoulos, 2008. "Ability, Gender, and Performance Standards: Evidence from Academic Probation," NBER Working Papers 14261, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
  9. Daron Acemoglu & Victor Chernozhukov & Muhamet Yildiz, 2007. "Learning and Disagreement in an Uncertain World," Carlo Alberto Notebooks 48, Collegio Carlo Alberto. [Downloadable!]
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  10. Giacomo De Giorgi & Michele Pellizzari & Silvia Redaelli, 2007. "Be as Careful of the Books You Read as of the Company You Keep: Evidence on Peer Effects in Educational Choices," IZA Discussion Papers 2833, Institute for the Study of Labor (IZA). [Downloadable!]
  11. Ales Cerný & Fabio Maccheroni & Massimo Marinacci & Aldo Rustichini, 2008. "On the Computation of Optimal Monotone Mean-Variance Portfolios via Truncated Quadratic Utility," Carlo Alberto Notebooks 79, Collegio Carlo Alberto. [Downloadable!]
  12. Russell Gerrard & Bjarne Højgaard & Elena Vigna, 2008. "Choosing the Optimal Annuitization Time Post Retirement," Carlo Alberto Notebooks 76, Collegio Carlo Alberto. [Downloadable!]
  13. Itzhak Gilboa & Fabio Maccheroni & Massimo Marinacci & David Schmeidler, 2008. "Objective and Subjective Rationality in a Multiple Prior Model," Carlo Alberto Notebooks 73, Collegio Carlo Alberto, revised 2008. [Downloadable!]
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