The effect of subsidies in kind on the choice of a college

It is possible that government subsidies to higher education, disbursed in kind, can produce the anomalous result of reducing the consumption of the good being subsidized. In this paper, I employ individual and college data to estimate the effect of such subsidies on students' choices of colleg...

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Veröffentlicht in:Journal of public economics 1992-08, Vol.48 (3), p.269-292
1. Verfasser: Ganderton, Philip T.
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container_title Journal of public economics
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creator Ganderton, Philip T.
description It is possible that government subsidies to higher education, disbursed in kind, can produce the anomalous result of reducing the consumption of the good being subsidized. In this paper, I employ individual and college data to estimate the effect of such subsidies on students' choices of college quality. Empirical estimates from a switching regression model with correction for the joint decisions to apply to college and choose the public or private sector are presented. Predictions from the model suggest that students choose a substantially lower quality public college than they would have chosen in the private sector.
doi_str_mv 10.1016/0047-2727(92)90009-5
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source RePEc; ScienceDirect Journals (5 years ago - present)
subjects Choices
Colleges & universities
Comparative studies
Economic models
Economic theory
Effects
Higher education
Regression analysis
Students
Subsidies
title The effect of subsidies in kind on the choice of a college
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