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The derived demand for faculty research

  • Elizabeth Becker

    (Analysis Group, Inc., New York, NY 10020, USA)

  • Cotton M. Lindsay

    (Department of Economics, Clemson University, Clemson, SC 29634-1309, USA)

  • Gary Grizzle

    (United Parcel Service, Atlanta, GA 30328, USA)

Registered author(s):

    Estimation of the demands for many services supplied by government and charitable organizations are hampered by two practices common to the supply of these services. The suppliers often employ non-price rationing of these services, and they price discriminate. The supply of college training, for example, is rationed on the basis of academic ability as well as willingness to pay, and more able students are typically quoted lower net prices (associated with scholarships) than less able students. This paper suggests a method for dealing with both practices in the analysis of cross-sectional data. This methodology is used to investigate the question of why university faculty members are expected to do research as well as teach. One answer supported by our empirical work is that the customers (e.g., the students) demand it. Thus, controlling for price and non-academic features, better students will choose to attend a university where more scholarly research is performed. Moreover, our empirical findings also support a strong negative link between faculty time devoted to teaching and the supply of research. Copyright © 2003 John Wiley & Sons, Ltd.

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    File URL: http://hdl.handle.net/10.1002/mde.1117
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    Article provided by John Wiley & Sons, Ltd. in its journal Managerial and Decision Economics.

    Volume (Year): 24 (2003)
    Issue (Month): 8 ()
    Pages: 549-567

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    Handle: RePEc:wly:mgtdec:v:24:y:2003:i:8:p:549-567
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    1. 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.
    2. Ronald G. Ehrenberg & Daniel R. Sherman, 1984. "Optimal Financial Aid Policies for a Selective University," Journal of Human Resources, University of Wisconsin Press, vol. 19(2), pages 202-230.
    3. Miller, James C, III & Tollison, Robert D, 1975. "Rates of Publication per Faculty Member in Forty-Five "Rated" Economics Departments," Economic Inquiry, Western Economic Association International, vol. 13(1), pages 122-23, March.
    4. Charles T. Clotfelter, 1996. "Buying the Best: Cost Escalation in Elite Higher Education," NBER Books, National Bureau of Economic Research, Inc, number clot96-1, December.
    5. Cohn, Elchanan & Rhine, Sherrie L W & Santos, Maria C, 1989. "Institutions of Higher Education as Multi-product Firms: Economies of Scale and Scope," The Review of Economics and Statistics, MIT Press, vol. 71(2), pages 284-90, May.
    6. Loury, Linda Datcher & Garman, David, 1995. "College Selectivity and Earnings," Journal of Labor Economics, University of Chicago Press, vol. 13(2), pages 289-308, April.
    7. Elizabeth Savoca, 1991. "The Effect of Changes in the Composition of Financial Aid on College Enrollments," Eastern Economic Journal, Eastern Economic Association, vol. 17(1), pages 109-121, Jan-Mar.
    8. Goudriaan, Rene & de Groot, Hans, 1993. "State regulation and university behavior," Journal of Economic Behavior & Organization, Elsevier, vol. 20(3), pages 309-318, April.
    9. Harford, Jon D. & Marcus, Richard D., 1986. "Tuition and U.S. private college characteristics: The hedonic approach," Economics of Education Review, Elsevier, vol. 5(4), pages 415-430, August.
    10. Lehr, Dona K & Newton, Jan M, 1978. "Time Series and Cross-Sectional Investigations of the Demand for Higher Education," Economic Inquiry, Western Economic Association International, vol. 16(3), pages 411-22, July.
    11. Clotfelter, Charles T. & Ehrenberg, Ronald G. & Getz, Malcolm & Siegfried, John J., 1992. "Economic Challenges in Higher Education," National Bureau of Economic Research Books, University of Chicago Press, edition 1, number 9780226110509, July.
    12. Winship C. Fuller & Charles F. Manski & David A. Wise, 1982. "New Evidence on the Economic Determinants of Postsecondary Schooling Choices," Journal of Human Resources, University of Wisconsin Press, vol. 17(4), pages 477-498.
    13. McPherson, Michael S & Schapiro, Morton Owen, 1991. "Does Student Aid Affect College Enrollment? New Evidence on a Persistent Controversy," American Economic Review, American Economic Association, vol. 81(1), pages 309-18, March.
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