Participation and study decisions in a public system of higher education
We analyze the decision whether to participate and where and what to study in a public system of higher education, based on a unique dataset of all eligible high school pupils in an essentially closed region (Flanders). We find that pupils perceive the available institutions and programs as close substitutes relative to the outside option. This implies an ambiguous role for travel costs: they hardly affect the participation decision, but have a strong impact on the decision where and what to study. To illustrate how our empirical results can inform the debate on reforming public systems, we assess the effects of tuition fee increases. Uniform cost-based tuition fee increases achieve most of the welfare gains; the additional gains from fee differentiation are relatively limited. These welfare gains are quite large under conservative assumptions on the social cost of public funds, and there is a substantial redistribution from students to outsiders. Copyright © 2009 John Wiley & Sons, Ltd.
Volume (Year): 25 (2010)
Issue (Month): 3 ()
|Contact details of provider:|| Web page: http://www.interscience.wiley.com/jpages/0883-7252/|
|Order Information:|| Web: http://www3.interscience.wiley.com/jcatalog/subscribe.jsp?issn=0883-7252 Email: |
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.:
- Terry Long, B.Bridget, 2004. "How have college decisions changed over time? An application of the conditional logistic choice model," Journal of Econometrics, Elsevier, vol. 121(1-2), pages 271-296.
- Jacobs, Bas & van der Ploeg, Frederick, 2005.
"Guide to Reform of Higher Education: A European Perspective,"
CEPR Discussion Papers
5327, C.E.P.R. Discussion Papers.
- Bas Jacobs & Frederick Van Der Ploeg, 2006. "Guide to reform of higher education: a European perspective," Economic Policy, CEPR;CES;MSH, vol. 21(47), pages 535-592, 07.
- Richard M. Bird, 2005. "Evaluating Public Expenditures: Does It Matter How They are Financed?," International Tax Program Papers 0506, International Tax Program, Institute for International Business, Joseph L. Rotman School of Management, University of Toronto.
- Dennis Epple & Richard Romano & Holger Sieg, 2006.
"Admission, Tuition, and Financial Aid Policies in the Market for Higher Education,"
Econometric Society, vol. 74(4), pages 885-928, 07.
- Dennis Epple & Richard Romano & Holger Sieg, "undated". "Admission, Tuition, and Financial Aid Policies in the Market for Higher Education," GSIA Working Papers 2003-04, Carnegie Mellon University, Tepper School of Business.
- Berry, Steven & Levinsohn, James & Pakes, Ariel, 1995. "Automobile Prices in Market Equilibrium," Econometrica, Econometric Society, vol. 63(4), pages 841-890, July.
- Frenette, Marc, 2003. "Access to College and University: Does Distance Matter?," Analytical Studies Branch Research Paper Series 2003201e, Statistics Canada, Analytical Studies Branch.
- Murphy, Kevin M & Topel, Robert H, 1985.
"Estimation and Inference in Two-Step Econometric Models,"
Journal of Business & Economic Statistics,
American Statistical Association, vol. 3(4), pages 370-379, October.
- Murphy, Kevin M & Topel, Robert H, 2002. "Estimation and Inference in Two-Step Econometric Models," Journal of Business & Economic Statistics, American Statistical Association, vol. 20(1), pages 88-97, January.
- Train,Kenneth E., 2009.
"Discrete Choice Methods with Simulation,"
Cambridge University Press, number 9780521747387, December.
- Atkinson, A. B. & Stiglitz, J. E., 1976. "The design of tax structure: Direct versus indirect taxation," Journal of Public Economics, Elsevier, vol. 6(1-2), pages 55-75.
- Thomas J. Kane, 1995. "Rising Public College Tuition and College Entry: How Well Do Public Subsidies Promote Access to College?," NBER Working Papers 5164, National Bureau of Economic Research, Inc.
- Nicholas Barr, 2004. "Higher Education Funding," Oxford Review of Economic Policy, Oxford University Press, vol. 20(2), pages 264-283, Summer.
- Daniel McFadden & Kenneth Train, 2000. "Mixed MNL models for discrete response," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 15(5), pages 447-470.
- Bierlaire, M. & Bolduc, D. & McFadden, D., 2008. "The estimation of generalized extreme value models from choice-based samples," Transportation Research Part B: Methodological, Elsevier, vol. 42(4), pages 381-394, May.
When requesting a correction, please mention this item's handle: RePEc:jae:japmet:v:25:y:2010:i:3:p:355-391. 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: (Wiley-Blackwell Digital Licensing)or (Christopher F. Baum)
If references are entirely missing, you can add them using this form.