Please use this identifier to cite or link to this item: https://repositorio.insper.edu.br/handle/11224/5780
Type: Working Paper
Title: Peer Effect and Competition in Higher Education
Author: Andrade, Eduardo de Carvalho
Moita, Rodrigo Menon Simões
Silva, Carlos E. L.
Publication Date: 2009
Abstract: This paper analyzes the role of peer effect in the market for higher education. Peer effect is a key variable to understand why higher education institutions set tuition in a way to maintain permanent excess demand. We use data on undergraduate business courses in Brazil to estimate a discrete choice model of demand. The results show a strong impact of peer effect on students’ choice of school. We calculate the tuition increase that would eliminate the excess demand. The results show that the upper limit of the total investment in peer effect is equal to US$ 770 thousands per month for the freshmen year, or 5.13% of the current revenues.
Keywords (english terms): Higher Education
Peer Effect
Discrete Choice
Multinomial Logit
Language: Inglês
CNPq Area: Ciências Sociais Aplicadas
Copyright: O INSPER E ESTE REPOSITÓRIO NÃO DETÊM OS DIREITOS DE USO E REPRODUÇÃO DOS CONTEÚDOS AQUI REGISTRADOS. É RESPONSABILIDADE DO USUÁRIO VERIFICAR OS USOS PERMITIDOS NA FONTE ORIGINAL, RESPEITANDO-SE OS DIREITOS DE AUTOR OU EDITOR
Appears in Collections:Coleção Insper Working Papers

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