Does Research Add Value for Undergraduates?
This paper uses a hedonic model for pricing decisions in non-competitive markets to model the relationship between undergraduate tuition and the characteristics of private universities. The model includes measures of externally funded research, the influence of student aid policies, college and university characteristics, attributes of the student body, and the quality of the faculty. The overall conclusions is that externally funded research reduces tuition after account for faculty quality. The findings should be treated as suggestive because they are based on one year and a small sample.
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