Abstract

This study examines the determinants of undergraduate educational production, and how it is affected by different choices and resource constraints faced by colleges. Based on neoclassical economic theory, a system of structural equations was built to model these choices and resource constraints. It was hypothesized that the residential aspect of colleges increases educational output through two separate channels- revenue generation, and impact on quality. Using college data for the year 2014, the hypothesis was empirically tested by running the data through the 3SLS simultaneous equations estimation method. The results indicated that residential status increases a college’s output quality, as measured by multiple quality proxies. Specifically, increases in the percentage of students living on campus, all else equal, has a significant causal effect on both percentage of students who graduate, and student loan repayment rates of graduates.

Advisor

Sell, John

Department

Business Economics

Disciplines

Economic Theory | Public Economics

Keywords

Education Economics, Higher Education

Publication Date

2017

Degree Granted

Bachelor of Arts

Document Type

Senior Independent Study Thesis

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