Equilibrium Tuition, Applications, Admissions and Enrollment in the College Market
I develop and estimate a structural equilibrium model of the college market. Students, having heterogeneous abilities and preferences, make college application decisions, subject to uncertainty and application costs. Colleges, observing only noisy measures of student ability, choose tuition and admissions policies to compete for more able students. Tuition, applications, admissions and enrollment are joint outcomes from a subgame perfect Nash equilibrium. I estimate the structural parameters of the model using data from the National Longitudinal Survey of Youth 1997, via a three-step procedure to deal with potential multiple equilibria. In counterfactual experiments, I use the model first to examine the extent to which college enrollment can be increased by expanding the supply of colleges, and then to assess the importance of various measures of student ability.
|Date of creation:||Jan 2012|
|Date of revision:|
|Contact details of provider:|| Web page: http://www.hceconomics.org/|
More information through EDIRC
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.:
- Christopher Avery & Jonathan D. Levin, 2009.
"Early Admissions at Selective Colleges,"
NBER Working Papers
14844, National Bureau of Economic Research, Inc.
- Mailath George J. & Okuno-Fujiwara Masahiro & Postlewaite Andrew, 1993. "Belief-Based Refinements in Signalling Games," Journal of Economic Theory, Elsevier, vol. 60(2), pages 241-276, August.
- Stacy Berg Dale & Alan B. Krueger, 2002.
"Estimating the Payoff to Attending a More Selective College: An Application of Selection on Observables and Unobservables,"
The Quarterly Journal of Economics,
Oxford University Press, vol. 117(4), pages 1491-1527.
- Stacy Berg Dale & Alan B. Krueger, 1999. "Estimating the Payoff to Attending a More Selective College: An Application of Selection on Observables and Unobservables," NBER Working Papers 7322, National Bureau of Economic Research, Inc.
- Stacy Berg Dale & Alan B. Krueger, 1999. "Estimating the Payoff to Attending a More Selective College: An Application of Selection on Observables and Unobservables," Mathematica Policy Research Reports 4bafb729911e486baf90b34c9, Mathematica Policy Research.
- Arcidiacono, Peter & Nicholson, Sean, 2005.
"Peer effects in medical school,"
Journal of Public Economics,
Elsevier, vol. 89(2-3), pages 327-350, February.
- Hector Chade & Gregory Lewis & Lones Smith, 2014.
"Student Portfolios and the College Admissions Problem,"
Review of Economic Studies,
Oxford University Press, vol. 81(3), pages 971-1002.
- Chade, H. & Lewis, Gregory & Smith, L., 2014. "Student Portfolios and the College Admissions Problem," Scholarly Articles 12363836, Harvard University Department of Economics.
- Dennis Epple & Richard Romano & Holger Sieg, .
"Admission, Tuition, and Financial Aid Policies in the Market for Higher Education,"
GSIA Working Papers
2003-04, Carnegie Mellon University, Tepper School of Business.
- Dennis Epple & Richard Romano & Holger Sieg, 2006. "Admission, Tuition, and Financial Aid Policies in the Market for Higher Education," Econometrica, Econometric Society, vol. 74(4), pages 885-928, 07.
- Jessica S. Howell, 2010. "Assessing the Impact of Eliminating Affirmative Action in Higher Education," Journal of Labor Economics, University of Chicago Press, vol. 28(1), pages 113-166, 01.
- Keane, Michael P & Wolpin, Kenneth I, 2001. "The Effect of Parental Transfers and Borrowing Constraints on Educational Attainment," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 42(4), pages 1051-1103, November.
- Andrea Moro, 2003. "The Effect Of Statistical Discrimination On Black-White Wage Inequality: Estimating A Model With Multiple Equilibria," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 44(2), pages 467-500, 05.
- Peter Arcidiacono, 2005. "Affirmative Action in Higher Education: How Do Admission and Financial Aid Rules Affect Future Earnings?," Econometrica, Econometric Society, vol. 73(5), pages 1477-1524, 09.
- Erik Meijer & Jelmer Ypma, 2008. "A Simple Identification Proof for a Mixture of Two Univariate Normal Distributions," Journal of Classification, Springer;The Classification Society, vol. 25(1), pages 113-123, June.
When requesting a correction, please mention this item's handle: RePEc:hka:wpaper:2012-002. 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: (Jennifer Pachon)
If references are entirely missing, you can add them using this form.