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Tuition fees, self-esteem and social heterogeneity

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Author Info

  • Hugo Harari-Kermadec

    ()
    (SAMM - Statistique, Analyse et Modélisation Multidisciplinaire (SAmos-Marin Mersenne) - Université Panthéon-Sorbonne - Paris I)

  • David Flacher

    ()
    (CEPN - Centre d'économie de l'Université de Paris Nord - CNRS : UMR7115 - Université Paris-Nord - Paris XIII)

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    Abstract

    Modelling students' behaviour in relation to tuition fees is a complex task since students' "talent" is not common knowledge. Students observe a private noisy signal of their abilities, while university receives noisy information based on the quantitative and qualitative data provided by university applicants. In this article, we add the heterogeneity of the population to this model: we assume that this heterogeneity means that the perception of skills among a part of the population is biased and underestimates the capabilities of its members to succeed in the higher education system. Our conclusions differ from those derived in the literature and show in particular that the optimal tuition fees for a given number of students are lower than those obtained for a homogeneous population.

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    Bibliographic Info

    Paper provided by HAL in its series Post-Print with number hal-00566151.

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    Date of creation: 2011
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    Publication status: Published, Education Economics, 2011, 622
    Handle: RePEc:hal:journl:hal-00566151

    Note: View the original document on HAL open archive server: http://hal.archives-ouvertes.fr/hal-00566151/en/
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    1. Robert J. Gary-Bobo & Alain Trannoy, 2005. "Efficient Tuition & Fees, Examinations, and Subsidies," IDEP Working Papers 0501, Institut d'economie publique (IDEP), Marseille, France, revised 01 Mar 2005.
    2. Pedro Carneiro & James J. Heckman, 2002. "The Evidence on Credit Constraints in Post--secondary Schooling," Economic Journal, Royal Economic Society, vol. 112(482), pages 705-734, October.
    3. Keane, Michael P & Wolpin, Kenneth I, 2001. "The Effect of Parental Transfers and Borrowing Constraints on Educational Attainment," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 42(4), pages 1051-1103, November.
    4. Erica Field, 2009. "Educational Debt Burden and Career Choice: Evidence from a Financial Aid Experiment at NYU Law School," American Economic Journal: Applied Economics, American Economic Association, vol. 1(1), pages 1-21, January.
    5. Stephen Easton & Duane Rockerbie, 2008. "Optimal government subsidies to universities in the face of tuition and enrollment constraints," Education Economics, Taylor & Francis Journals, vol. 16(2), pages 191-201.
    6. Stephen V. Cameron & James J. Heckman, 2001. "The Dynamics of Educational Attainment for Black, Hispanic, and White Males," Journal of Political Economy, University of Chicago Press, vol. 109(3), pages 455-499, June.
    7. Alain Trannoy & Robert Gary-Bobo, 2005. "Faut-il augmenter les droits d'inscription à l'université ?," Revue Française d'Économie, Programme National Persée, vol. 19(3), pages 189-237.
    8. Erik Plug & Wim Vijverberg, 2005. "Does Family Income Matter for Schooling Outcomes? Using Adoptees as a Natural Experiment," Economic Journal, Royal Economic Society, vol. 115(506), pages 879-906, October.
    9. Micklewright, John, 1989. "Choice at Sixteen," Economica, London School of Economics and Political Science, vol. 56(221), pages 25-39, February.
    10. Hidalgo Cabrillana, Ana, 2009. "Endogenous capital market imperfections, human capital, and intergenerational mobility," Journal of Development Economics, Elsevier, vol. 90(2), pages 285-298, November.
    11. Benoit Lorel, 2009. "Higher education system, skill premium and welfare," Education Economics, Taylor & Francis Journals, vol. 17(4), pages 505-522.
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