Admission, Tuition, and Financial Aid Policies in the Market for Higher Education

Dennis Epple, Richard Romano and Holger Sieg

Econometrica, 2006, vol. 74, issue 4, 885-928

Abstract: We present an equilibrium model of the market for higher education. Our model simultaneously predicts student selection into institutions of higher education, financial aid, educational expenditures, and educational outcomes. We show that the model gives rise to a strict hierarchy of colleges that differ by the educational quality provided to the students. We also develop a new estimation procedure that exploits the observed variation in prices within colleges. Identification is based on variation in endowments and technology. It does not rely on observed variation in potentially endogenous characteristics of colleges such as peer quality measures and expenditures. We estimate the structural parameters using data collected by the National Center for Education Statistics and aggregate data from Peterson's and the National Science Foundation. Copyright The Econometric Society 2006.

Date: 2006
References: Add references at CitEc
Citations: View citations in EconPapers (166)

Downloads: (external link)
http://hdl.handle.net/10.1111/j.1468-0262.2006.00690.x link to full text (text/html)
Access to full text is restricted to subscribers.

Related works:
Working Paper: Admission, Tuition, and Financial Aid Policies in the Market for Higher Education
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:ecm:emetrp:v:74:y:2006:i:4:p:885-928

Ordering information: This journal article can be ordered from
https://www.economet ... ordering-back-issues

Access Statistics for this article

Econometrica is currently edited by Guido Imbens

More articles in Econometrica from Econometric Society Contact information at EDIRC.
Bibliographic data for series maintained by Wiley Content Delivery ().