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The international market for MBA qualifications: The relationship between tuition fees and applications

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  • Elliott, Caroline
  • Soo, Kwok Tong

Abstract

This paper explores the relationship between tuition fees charged by MBA programmes and the number of applications to these programmes, using a panel dataset comprising universities from countries across the world. Using Three-Stage-Least-Squares methods for simultaneous equations, we find a two-way relationship between tuition fees and applications: higher application numbers encourage universities to charge higher fees in the future, but higher fees in turn curtail application numbers. We find evidence that higher GMAT scores of existing students increase applications, as do higher post MBA salaries. Meanwhile, university and programme professional accreditations do not impact on student application choices, nor do alumni ratings of programme quality. Published MBA programme rankings appear to have little impact on applications, and where an effect can be identified, it appears that a better ranking discourages applications. Only US News rankings have a significant effect on applicants to US MBA programmes.

Suggested Citation

  • Elliott, Caroline & Soo, Kwok Tong, 2013. "The international market for MBA qualifications: The relationship between tuition fees and applications," Economics of Education Review, Elsevier, vol. 34(C), pages 162-174.
  • Handle: RePEc:eee:ecoedu:v:34:y:2013:i:c:p:162-174
    DOI: 10.1016/j.econedurev.2013.02.006
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    References listed on IDEAS

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    Cited by:

    1. Havranek, Tomas & Irsova, Zuzana & Zeynalova, Olesia, 2017. "Tuition Reduces Enrollment Less Than Commonly Thought," MPRA Paper 78813, University Library of Munich, Germany.
    2. Gicheva, Dora, 2016. "Student loans or marriage? A look at the highly educated," Economics of Education Review, Elsevier, vol. 53(C), pages 207-216.

    More about this item

    Keywords

    MBAs; Tuition fees; Applications; Simultaneous equations;

    JEL classification:

    • I21 - Health, Education, and Welfare - - Education - - - Analysis of Education
    • D12 - Microeconomics - - Household Behavior - - - Consumer Economics: Empirical Analysis

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