Advanced Search
MyIDEAS: Login to save this paper or follow this series

Regulation in the Market for Education and Optimal Choice of Curriculum

Contents:

Author Info

  • Gerald Eisenkopf
  • Ansgar Wohlschlegel

Abstract

We analyze educational institutions incentives to set up demanding or lax curricula in duopolistic markets for education with endogenous enrolment of students. We assume that there is a positive externality of student achievement on the local economy. Comparing the case of regulated tuition fees with an unregulated market, we identify the following inefficiencies: Under regulated tuition fees schools will set up inefficiently lax curricula in an attempt to please low-quality students even if schools internalize some of the externality. On the other hand, unregulated schools set up excessively differentiated curricula in order to relax competition in tuition fees. Deregulation gets more attractive if a larger fraction of the externality is internalized.

Download Info

If 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.
File URL: http://www.twi-kreuzlingen.ch/uploads/tx_cal/media/TWI-RPS-064-Eisenkopf-Wohlschlegel-2011-05.pdf
Download Restriction: no

Bibliographic Info

Paper provided by Thurgauer Wirtschaftsinstitut, Universität Konstanz in its series TWI Research Paper Series with number 64.

as in new window
Length:
Date of creation: 2011
Date of revision:
Handle: RePEc:twi:respas:0064

Contact details of provider:
Postal: Hauptstr. 90, CH-8280 Kreuzlingen 2
Phone: +41-71-677 05 10
Fax: +41-71-677 05 11
Email:
Web page: http://www.twi-kreuzlingen.ch/
More information through EDIRC

Related research

Keywords: Education; Local Externalities; Produkt Differentiation; Price Competition; Vouchers;

Other versions of this item:

Find related papers by JEL classification:

This paper has been announced in the following NEP Reports:

References

References listed on IDEAS
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.:
as in new window
  1. Gerald Eisenkopf, 2007. "Learning and Peer Effects," TWI Research Paper Series 16, Thurgauer Wirtschaftsinstitut, Universität Konstanz.
  2. Epple, Dennis & Newlon, Elizabeth & Romano, Richard, 2002. "Ability tracking, school competition, and the distribution of educational benefits," Journal of Public Economics, Elsevier, vol. 83(1), pages 1-48, January.
  3. Wößmann, Ludger, 2003. "Schooling resources, educational institutions and student performance: The international evidence," Munich Reprints in Economics 19661, University of Munich, Department of Economics.
  4. Edward P. Lazear, 2001. "Educational Production," The Quarterly Journal of Economics, MIT Press, vol. 116(3), pages 777-803, August.
  5. Benabou, Roland, 1993. "Workings of a City: Location, Education, and Production," The Quarterly Journal of Economics, MIT Press, vol. 108(3), pages 619-52, August.
  6. Dennis Epple & Richard Romano, 2008. "Educational Vouchers And Cream Skimming," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 49(4), pages 1395-1435, November.
  7. Caroline Minter Hoxby, 1994. "Does Competition Among Public Schools Benefit Students and Taxpayers?," NBER Working Papers 4979, National Bureau of Economic Research, Inc.
  8. Stephen Gibbons & Stephen Machin & Olmo Silva, 2008. "Choice, Competition, and Pupil Achievement," Journal of the European Economic Association, MIT Press, vol. 6(4), pages 912-947, 06.
  9. Francisco A. Gallego, 2004. "School Choice, Incentives, and Academic Outcomes: Evidence from Chile," Econometric Society 2004 Latin American Meetings 39, Econometric Society.
  10. Eisenkopf, Gerald, 2010. "Peer effects, motivation, and learning," Economics of Education Review, Elsevier, vol. 29(3), pages 364-374, June.
  11. DEL REY, Elena, . "Teaching versus research: a model of state university competition," CORE Discussion Papers RP -1501, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
  12. 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.
  13. Jepsen, Christopher & Montgomery, Mark, 2009. "Miles to go before I learn: The effect of travel distance on the mature person's choice of a community college," Journal of Urban Economics, Elsevier, vol. 65(1), pages 64-73, January.
  14. Milton Friedman, 1997. "Public Schools: Make Them Private," Education Economics, Taylor & Francis Journals, vol. 5(3), pages 341-344.
  15. James E. Rauch, 1991. "Productivity Gains From Geographic Concentration of human Capital: Evidence From the Cities," NBER Working Papers 3905, National Bureau of Economic Research, Inc.
  16. Andersson, Roland & Quigley, John M. & Wilhelmsson, Mats, 2009. "Urbanization, productivity, and innovation: Evidence from investment in higher education," Journal of Urban Economics, Elsevier, vol. 66(1), pages 2-15, July.
  17. Machin Stephen & Marie Olivier & Vujić Sunčica, 2010. "The Crime Reducing Effect of Education," ROA Research Memorandum 013, Maastricht University, Research Centre for Education and the Labour Market (ROA).
  18. Alexander Kemnitz, 2007. "University Funding Reform, Competition, and Teaching Quality," Journal of Institutional and Theoretical Economics (JITE), Mohr Siebeck, Tübingen, vol. 163(2), pages 356-378, June.
  19. Elizabeth M. Caucutt, 2002. "Educational Vouchers When There Are Peer Group Effects--Size Matters," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 43(1), pages 195-222, February.
  20. Epple, Dennis & Romano, Richard & Sieg, Holger, 2000. "Peer Effects, Financial Aid, and Selection of Students into Colleges and Universities: An Empirical Analysis," Working Papers 00-02, Duke University, Department of Economics.
  21. Sandstrom, F. Mikael & Bergstrom, Fredrik, 2005. "School vouchers in practice: competition will not hurt you," Journal of Public Economics, Elsevier, vol. 89(2-3), pages 351-380, February.
  22. Rincke, Johannes, 2006. "Competition in the public school sector: Evidence on strategic interaction among US school districts," Journal of Urban Economics, Elsevier, vol. 59(3), pages 352-369, May.
  23. De Fraja, Gianni & Iossa, Elisabetta, 2002. "Competition among Universities and the Emergence of the Elite Institution," Bulletin of Economic Research, Wiley Blackwell, vol. 54(3), pages 275-93, July.
  24. Hoxby, Caroline M., 1999. "The productivity of schools and other local public goods producers," Journal of Public Economics, Elsevier, vol. 74(1), pages 1-30, October.
  25. Dennis Epple & Richard Romano & Holger Sieg, 2006. "Admission, Tuition, and Financial Aid Policies in the Market for Higher Education," Econometrica, Econometric Society, vol. 74(4), pages 885-928, 07.
  26. Buddin, Richard & Zamarro, Gema, 2009. "Teacher qualifications and student achievement in urban elementary schools," Journal of Urban Economics, Elsevier, vol. 66(2), pages 103-115, September.
  27. Volker Meier, 2004. "Choosing between School Systems: The Risk of Failure," FinanzArchiv: Public Finance Analysis, Mohr Siebeck, Tübingen, vol. 60(1), pages 83-, April.
  28. Rothschild, Michael & White, Lawrence J, 1995. "The Analytics of the Pricing of Higher Education and Other Services in Which the Customers Are Inputs," Journal of Political Economy, University of Chicago Press, vol. 103(3), pages 573-86, June.
  29. Rosenthal, Stuart S. & Strange, William C., 2008. "The attenuation of human capital spillovers," Journal of Urban Economics, Elsevier, vol. 64(2), pages 373-389, September.
  30. Shaked, Avner & Sutton, John, 1982. "Relaxing Price Competition through Product Differentiation," Review of Economic Studies, Wiley Blackwell, vol. 49(1), pages 3-13, January.
  31. Robert J. Gary-Bobo & Alain Trannoy, 2008. "Efficient Tuition Fees and Examinations," Journal of the European Economic Association, MIT Press, vol. 6(6), pages 1211-1243, December.
Full references (including those not matched with items on IDEAS)

Citations

Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
as in new window

Cited by:
  1. Xefteris, Dimitrios, 2013. "Equilibria in unidirectional spatial models," Economics Letters, Elsevier, vol. 119(2), pages 146-149.

Lists

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

Statistics

Access and download statistics

Corrections

When requesting a correction, please mention this item's handle: RePEc:twi:respas:0064. See general information about how to correct material in RePEc.

For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Ulrich Wacker).

If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

If references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

Please note that corrections may take a couple of weeks to filter through the various RePEc services.