Mini-Course on the Economics of Higher Education Lecture 2: Market for Higher Education

Ces, Michael Kaganovich
2017 unpublished
According to this theory, which emphasized the intrinsic value added of college education, its magnitude depends, in addition to instructional inputs, such as the quality of teachers, also on the average quality of students, which gave rise to the explorations of peer group effects in education. The key innovation of Rothschild and White: students can enter as inputs in education production, not just its output. Thus some students can be more valuable to a university than others. (We'll talk
more » ... ers. (We'll talk about this set of ideas and how they can help explain the structure of higher education market soon.)