Skill-Biased Technical Change and the Cost of Higher Education: An Exploratory Model
Fang Yang and
John Jones
Additional contact information
Fang Yang: SUNY-Albany
No 597, 2012 Meeting Papers from Society for Economic Dynamics
Abstract:
We document trends in higher education costs and tuition over the past 50 years. To explain these trends, we develop and simulate a general equilibrium model with unbalanced technical change. We assume that higher education suffers from Baumol's (1967) service sector disease, in that the quantity of labor and capital needed to educate a student is constant over time. Calibrating the model, we show that it can explain the rise in college costs between 1959 and 2000. We then use the model to perform a number of numerical experiments. We find, consistent with a number of studies, that changes in the tuition discount rate have little long-run effect on college attainment.
Date: 2012
New Economics Papers: this item is included in nep-dge and nep-edu
References: Add references at CitEc
Citations:
Downloads: (external link)
https://red-files-public.s3.amazonaws.com/meetpapers/2012/paper_597.pdf (application/pdf)
Related works:
Working Paper: Skill-Biased Technical Change and the Cost of Higher Education: An Exploratory Model (2011)
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
HTML/Text
Persistent link: https://EconPapers.repec.org/RePEc:red:sed012:597
Access Statistics for this paper
More papers in 2012 Meeting Papers from Society for Economic Dynamics Society for Economic Dynamics Marina Azzimonti Department of Economics Stonybrook University 10 Nicolls Road Stonybrook NY 11790 USA. Contact information at EDIRC.
Bibliographic data for series maintained by Christian Zimmermann (chuichuiche@gmail.com).