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Why Is There No Harvard Among Japanese Private Universities?

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  • Michio Naoi
  • Hideo Akabayashi

Abstract

The social and academic reputation of private universities in Japan is generally far behind the national universities. We argue that heavy subsidy and the low tuition of national universities determined by the central government are both responsible for making the production of high academic quality difficult for private universities in equilibrium. Using several simulations based on a theoretical model of assignment of heterogeneous students and universities with respect to tuition and educational quality, we show that the distribution of tuitions and academic quality of private universities are affected by the low tuition and heavy subsidy policy of national university. Using the cross-section data of all universities in Japan, we present empirical evidence on the determinants of tuition of private universities that support our theoretical prediction

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Bibliographic Info

Paper provided by Econometric Society in its series Econometric Society 2004 Far Eastern Meetings with number 726.

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Date of creation: 11 Aug 2004
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Handle: RePEc:ecm:feam04:726

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Keywords: Empirical analysis of Japanese economy; Demand for education quality; Assignment model;

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  1. Epple, Dennis & Romano, Richard E, 1998. "Competition between Private and Public Schools, Vouchers, and Peer-Group Effects," American Economic Review, American Economic Association, vol. 88(1), pages 33-62, March.
  2. Ivar Ekeland & James J. Heckman & Lars Nesheim, 2004. "Identification and Estimation of Hedonic Models," Journal of Political Economy, University of Chicago Press, vol. 112(S1), pages S60-S109, February.
  3. Rosen, Sherwin, 1974. "Hedonic Prices and Implicit Markets: Product Differentiation in Pure Competition," Journal of Political Economy, University of Chicago Press, vol. 82(1), pages 34-55, Jan.-Feb..
  4. Anglin, Paul M & Gencay, Ramazan, 1996. "Semiparametric Estimation of a Hedonic Price Function," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 11(6), pages 633-48, Nov.-Dec..
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