IDEAS home Printed from https://ideas.repec.org/a/ucp/jnlbus/v70y1997i1p1-31.html
   My bibliography  Save this article

The Best Business Schools: A Market-Based Approach

Author

Listed:
  • Tracy, Joseph
  • Waldfogel, Joel

Abstract

This article introduces a market-based methodology for evaluating the performance of MBA programs. The authors seek to distinguish the quality of a program from the quality of its students. They judge a program's performance by its value added, measured by the graduates' salaries, after accounting for student characteristics and job attributes. While four of the authors' top five programs have been highly ranked elsewhere, ten of their top twenty programs are unranked elsewhere. The authors explore the determinants of value added and find that programs with high faculty salaries and those relying heavily on the case method have significantly higher value added. Copyright 1997 by University of Chicago Press.

Suggested Citation

  • Tracy, Joseph & Waldfogel, Joel, 1997. "The Best Business Schools: A Market-Based Approach," The Journal of Business, University of Chicago Press, vol. 70(1), pages 1-31, January.
    • Handle: RePEc:ucp:jnlbus:v:70:y:1997:i:1:p:1-31
    DOI: 10.1086/209706
    as

    Download full text from publisher

    File URL: http://dx.doi.org/10.1086/209706
    File Function: full text
    Download Restriction: Access to full text is restricted to JSTOR subscribers. See http://www.jstor.org for details.
    File URL: https://libkey.io/10.1086/209706?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to look for a different version below or search for a different version of it.

    Other versions of this item:

    References listed on IDEAS

    as
    1. Gyourko, Joseph & Tracy, Joseph, 1991. "The Structure of Local Public Finance and the Quality of Life," Journal of Political Economy, University of Chicago Press, vol. 99(4), pages 774-806, August.
    2. Roback, Jennifer, 1982. "Wages, Rents, and the Quality of Life," Journal of Political Economy, University of Chicago Press, vol. 90(6), pages 1257-1278, December.
    3. Ronald G. Ehrenberg, 1988. "An Economic Analysis of the Market for Law School Students," NBER Working Papers 2602, National Bureau of Economic Research, Inc.
    4. Alan B. Krueger & Lawrence H. Summers, 1986. "Reflections on the Inter-Industry Wage Structure," NBER Working Papers 1968, National Bureau of Economic Research, Inc.
    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


    Cited by:

    1. Benito Arruñada & Xosé H. Vázquez, 2009. "Behavioral assumptions and management ability," Economics Working Papers 1157, Department of Economics and Business, Universitat Pompeu Fabra, revised Apr 2010.
    2. A. V. R. Pandiyan, 2011. "Employers' Perspective of MBA Curriculum in Meeting the Requirements of the Industry," Management and Labour Studies, XLRI Jamshedpur, School of Business Management & Human Resources, vol. 36(2), pages 143-154, May.
    3. Robert E. Martin, 2011. "The College Cost Disease," Books, Edward Elgar Publishing, number 14179.
    4. Ray, Subhash C. & Jeon, Yongil, 2008. "Reputation and efficiency: A non-parametric assessment of America's top-rated MBA programs," European Journal of Operational Research, Elsevier, vol. 189(1), pages 245-268, August.
    5. Carlos Madeira, 2020. "Measuring the perceived value of an MBA degree," Working Papers Central Bank of Chile 876, Central Bank of Chile.
    6. Caroline Elliott & Kwok Tong Soo, 2012. "The Returns to an MBA Degree: The Impact of Programme Attributes," Working Papers 24284646, Lancaster University Management School, Economics Department.
    7. Paul Oyer, 2006. "The Making of an Investment Banker: Macroeconomic Shocks, Career Choice, and Lifetime Income," NBER Working Papers 12059, National Bureau of Economic Research, Inc.
    8. Steven M. Shugan, 2003. "Editorial: Journal Rankings: Save the Outlets for Your Research," Marketing Science, INFORMS, vol. 22(4), pages 437-441.
    9. Qi Kong & Michael R. Veall, 2005. "Does the Maclean's Ranking Matter?," Canadian Public Policy, University of Toronto Press, vol. 31(3), pages 231-242, September.
    10. Yongil Jeon & Stephen M. Miller & Subhash C. Ray, 2007. "MBA Program Reputation And Quantitative Rankings: New Information for Students, Employers, And Program Administrators," Working papers 2007-44, University of Connecticut, Department of Economics.
    11. Grove, Wayne A. & Hussey, Andrew, 2014. "Returns to MBA quality: Pecuniary and non-pecuniary returns to peers, faculty, and institution quality," Labour Economics, Elsevier, vol. 26(C), pages 43-54.
    12. repec:ner:leuven:urn:hdl:123456789/327130 is not listed on IDEAS
    13. Besancenot, Damien & Faria, João Ricardo, 2010. "Good research and bad teaching? A business school tale," Research in Economics, Elsevier, vol. 64(2), pages 67-72, June.
    14. Yongil Jeon & Stephen M. Miller & Subhash C. Ray, 2003. "MBA Program Reputation: Objective Rankings for Students, Employers and Program Administrators," Working papers 2003-28, University of Connecticut, Department of Economics.
    15. Ravallion, Martin, 2000. "What can we learn about country performance from conditional comparisons across countries?," Policy Research Working Paper Series 2342, The World Bank.
    16. Dahlia K. Remler & Elda Pema, 2009. "Why do Institutions of Higher Education Reward Research While Selling Education?," NBER Working Papers 14974, National Bureau of Economic Research, Inc.
    17. Somnath Lahiri & Vikas Kumar, 2012. "Ranking International Business Institutions and Faculty Members Using Research Publication as the Measure," Management International Review, Springer, vol. 52(3), pages 317-340, June.
    18. Gicheva, Dora, 2012. "Worker mobility, employer-provided general training, and the choice of graduate education," Labour Economics, Elsevier, vol. 19(2), pages 232-240.
    19. Anne E Winkler & Sharon G Levin & Paula E Stephan & Wolfgang Gl&aauml;nzel, 2014. "Publishing Trends in Economics across Colleges and Universities, 1991–2007," Eastern Economic Journal, Palgrave Macmillan;Eastern Economic Association, vol. 40(4), pages 560-582, September.
    20. Ram Mudambi & Mike Peng & David Weng, 2008. "Research rankings of Asia Pacific business schools: Global versus local knowledge strategies," Asia Pacific Journal of Management, Springer, vol. 25(2), pages 171-188, June.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Alejandro Gaviria & Carlos Medina & Leonardo Morales & Jairo Núñez, 2010. "The Cost of Avoiding Crime: The Case of Bogotá," NBER Chapters, in: The Economics of Crime: Lessons For and From Latin America, pages 101-132, National Bureau of Economic Research, Inc.
    2. Kristiina Huttunen & Jarle Møen & Kjell G. Salvanes, 2018. "Job Loss and Regional Mobility," Journal of Labor Economics, University of Chicago Press, vol. 36(2), pages 479-509.
    3. Dekle, Robert & Eaton, Jonathan, 1999. "Agglomeration and Land Rents: Evidence from the Prefectures," Journal of Urban Economics, Elsevier, vol. 46(2), pages 200-214, September.
    4. David Albouy & Fernando Leibovici & Casey Warman, 2013. "Quality of life, firm productivity, and the value of amenities across Canadian cities," Canadian Journal of Economics/Revue canadienne d'économique, John Wiley & Sons, vol. 46(2), pages 379-411, May.
    5. Bieri, David S. & Kuminoff, Nicolai V. & Pope, Jaren C., 2023. "National expenditures on local amenities," Journal of Environmental Economics and Management, Elsevier, vol. 117(C).
    6. Christian A. L. Hilber, 2017. "The Economic Implications of House Price Capitalization: A Synthesis," Real Estate Economics, American Real Estate and Urban Economics Association, vol. 45(2), pages 301-339, April.
    7. Wouter Vermeulen & J. van Ommeren, 2006. "Compensation of regional unemployment in housing markets," CPB Discussion Paper 57, CPB Netherlands Bureau for Economic Policy Analysis.
    8. Jordan Rappaport & Jeffrey D. Sachs, 2001. "The U.S. as a coastal nation," Research Working Paper RWP 01-11, Federal Reserve Bank of Kansas City.
    9. Sinha, Paramita & Caulkins, Martha & Cropper, Maureen L., 2018. "Do Discrete Choice Approaches to Valuing Urban Amenities Yield Different Results Than Hedonic Models?," RFF Working Paper Series 18-02, Resources for the Future.
    10. Kristoffer Moeller, 2018. "Culturally clustered or in the cloud? How amenities drive firm location decision in Berlin," Journal of Regional Science, Wiley Blackwell, vol. 58(4), pages 728-758, September.
    11. Sevrin Waights, 2019. "The preservation of historic districts—is it worth it?," Journal of Economic Geography, Oxford University Press, vol. 19(2), pages 433-464.
    12. Tabuchi, Takatoshi & Yoshida, Atsushi, 2000. "Separating Urban Agglomeration Economies in Consumption and Production," Journal of Urban Economics, Elsevier, vol. 48(1), pages 70-84, July.
    13. Rebecca Diamond, 2017. "Housing Supply Elasticity and Rent Extraction by State and Local Governments," American Economic Journal: Economic Policy, American Economic Association, vol. 9(1), pages 74-111, February.
    14. Edward L. Glaeser & Joseph Gyourko, "undated". "The Impact of Zoning on Housing Affordability," Zell/Lurie Center Working Papers 395, Wharton School Samuel Zell and Robert Lurie Real Estate Center, University of Pennsylvania.
    15. Lucie Schmidt & Paul N. Courant, 2006. "Sometimes Close Is Good Enough: The Value Of Nearby Environmental Amenities," Journal of Regional Science, Wiley Blackwell, vol. 46(5), pages 931-951, December.
    16. Löffler, Max & Siegloch, Sebastian, 2015. "Property Taxation, Local Labor Markets and Rental Housing," VfS Annual Conference 2015 (Muenster): Economic Development - Theory and Policy 112967, Verein für Socialpolitik / German Economic Association.
    17. Andrew F. Haughwout & Robert P. Inman, 2004. "How should suburbs help their central cities?," Staff Reports 186, Federal Reserve Bank of New York.
    18. Davidsson, Michael & Cortes, Bienvenido, 2017. "The Role of the Housing Supply and the Regulatory Environment in Economic Growth of Micropolitan Statistical Areas," Journal of Regional Analysis and Policy, Mid-Continent Regional Science Association, vol. 47(1).
    19. François Ortalo-Magné & Andrea Prat, 2016. "Spatial Asset Pricing: A First Step," Economica, London School of Economics and Political Science, vol. 83(329), pages 130-171, January.
    20. Boustan, Leah Platt & Kahn, Matthew E. & Rhode, Paul W. & Yanguas, Maria Lucia, 2020. "The effect of natural disasters on economic activity in US counties: A century of data," Journal of Urban Economics, Elsevier, vol. 118(C).

    More about this item

    JEL classification:

    • M10 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - General
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ucp:jnlbus:v:70:y:1997:i:1:p:1-31. See general information about how to correct material in RePEc.

    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 CitEc recognized a bibliographic reference but did not link an item in RePEc 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 RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Journals Division (email available below). General contact details of provider: https://www.jstor.org/journal/jbusiness .

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

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.