The Economics Of Online Postsecondary Education: MOOCs, Nonselective Education, And Highly Selective Education
AbstractI consider how online postsecondary education, including massive open online courses (MOOCs), might fit into economically sustainable models of postsecondary education. I contrast nonselective postsecondary education (NSPE) in which institutions sell fairly standardized educational services in return for upfront payments and highly selective postsecondary education (HSPE) in which institutions invest in students in return for repayments much later in life. The analysis suggests that MOOCs will be financially sustainable substitutes for some NSPE, but there are risks even in these situations. The analysis suggests that MOOCs will be financially sustainable substitutes for only a small share of HSPE and are likely to collapse the economic model that allows HSPE institutions to invest in advanced education and research. I outline a non-MOOC model of online education that may allow HSPE institutions both to sustain their distinctive activities and to reach a larger number of students.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by Stanford Institute for Economic Policy Research in its series Discussion Papers with number 13-024.
Date of creation: Jan 2014
Date of revision:
This paper has been announced in the following NEP Reports:
- NEP-ALL-2014-02-15 (All new papers)
- NEP-EDU-2014-02-15 (Education)
- NEP-SOG-2014-02-15 (Sociology of Economics)
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Han Kim, E & Morse, Adair & Zingales, Luigi, 2006.
"Are Elite Universities Losing their Competitive Edge?,"
CEPR Discussion Papers
5700, C.E.P.R. Discussion Papers.
- Kim, E. Han & Morse, Adair & Zingales, Luigi, 2009. "Are elite universities losing their competitive edge?," Journal of Financial Economics, Elsevier, vol. 93(3), pages 353-381, September.
- E. Han Kim & Adair Morse & Luigi Zingales, 2006. "Are Elite Universities Losing Their Competitive Edge?," NBER Working Papers 12245, National Bureau of Economic Research, Inc.
- Caroline M. Hoxby, 2012.
"Endowment Management Based on a Positive Model of the University,"
NBER Working Papers
18626, National Bureau of Economic Research, Inc.
- Caroline M. Hoxby, 2013. "Endowment Management Based on a Positive Model of the University," NBER Chapters, in: How the Financial Crisis and Great Recession Affected Higher Education National Bureau of Economic Research, Inc.
- Melitz, Marc J., 2005.
"When and how should infant industries be protected?,"
Journal of International Economics,
Elsevier, vol. 66(1), pages 177-196, May.
- Melitz, Marc, 2005. "When and How Should Infant Industries Be Protected?," Scholarly Articles 3228378, Harvard University Department of Economics.
- Jonathan Meer & Harvey S. Rosen, 2012.
"Does Generosity Beget Generosity? Alumni Giving and Undergraduate Financial Aid,"
NBER Working Papers
17861, National Bureau of Economic Research, Inc.
- Meer, Jonathan & Rosen, Harvey S., 2012. "Does generosity beget generosity? Alumni giving and undergraduate financial aid," Economics of Education Review, Elsevier, vol. 31(6), pages 890-907.
- Clotfelter, C. T., 2003. "Alumni giving to elite private colleges and universities," Economics of Education Review, Elsevier, vol. 22(2), pages 109-120, April.
- Grossman, Gene M & Horn, Henrik, 1988.
"Infant-Industry Protection Reconsidered: The Case of Informational Barriers to Entry,"
The Quarterly Journal of Economics,
MIT Press, vol. 103(4), pages 767-87, November.
- Gene M. Grossman & Henrik Horn, 1987. "Infant-Industry Protection Reconsidered: The Case of Informational Barriers to Entry," NBER Working Papers 2159, National Bureau of Economic Research, Inc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Anne Shor).
If references are entirely missing, you can add them using this form.