Econometrica

Journal Of The Econometric Society

An International Society for the Advancement of Economic
Theory in its Relation to Statistics and Mathematics

Edited by: Guido W. Imbens • Print ISSN: 0012-9682 • Online ISSN: 1468-0262

Econometrica: Jul, 2006, Volume 74, Issue 4

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

https://doi.org/10.1111/j.1468-0262.2006.00690.x
p. 885-928

Dennis Epple, Richard Romano, Holger Sieg

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.


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Supplemental Material

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

These files contain the computer programs and data necessary to replicate the resultsin the paper.

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

This zip file contains the replication files for the manuscript.

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

These files contain the computer programs and data necessary to replicate the resultsin the paper.

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

This zip file contains the replication files for the manuscript.