Research
University fees, subsidies, and field of study
Melbourne Institute Working Paper (published September 2023)
Co-authors: A/Prof Mick Coelli and Dr Jan Kabatek
Abstract: We estimate the effects of discrete changes in student fees and government subsidies on student field of study preferences and enrolments at university. These estimates are constructed using both standard two-way fixed effects models and Conditional Multinomial Logit models using individual unit-record applications and enrolments data from the largest Australian state of New South Wales. Student preferences are negatively related to student fees but the elasticity estimates are not large. This is likely due to generous income-contingent loans with a zero real interest rate that cover all tuition fees. University enrolments by field of study respond to changes in fees and subsidies in a manner consistent with student preference responses rather than teaching revenue maximisation. This may be due to supply constraints, reputation concerns and other organisational priorities. The natural experiment we exploit is the 2020 Job-ready Graduates policy change.
Public lectures
How much do university applicants care about course costs and how responsive are universities? delivered to Melbourne University Centre for the Study of Higher Education , 19th of October 2022
Student choice: an empirical analysis delivered to a HECS-HELP conference hosted by Australian National University and Melbourne CSHE, 27th of September 2022