A copy of this work was available on the public web and has been preserved in the Wayback Machine. The capture dates from 2013; you can also visit the original URL.
The file type is
We document the growth in higher education costs and tuition over the past 50 years. To explain these trends, we develop a general equilibrium model with skilland sector-biased technical change. We assume that higher education su¤ers from Baumol's (1967) service sector disease, in that the quantity of labor and capital needed to educate a student is constant over time. Finding the model's parameters through a combination of calibration and estimation, we show that it can explain the rise indoi:10.2139/ssrn.2167037 fatcat:yt5oa6vlurf57bvks5kae3wpoa