THE U.S. MARKET FOR HIGHER EDUCATION: A GENERAL EQUILIBRIUM ANALYSIS OF STATE AND PRIVATE COLLEGES AND PUBLIC FUNDING POLICIES
We develop a general equilibrium model of the market for undergraduate higher education that captures the coexistence of public and private colleges, the large degree of quality differentiation among them, and the tuition and admission policies that emerge from their competition for students. The calibrated version of the model matches well the aggregate characteristics of … Read more