Perceptions of student price-responsiveness : a behavioural by door Johan Jacob (Hans) Vossensteyn.

By door Johan Jacob (Hans) Vossensteyn.

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Additional resources for Perceptions of student price-responsiveness : a behavioural economics exploration of the relationships between socio-economic status, perceptions of financial incentives and student choice

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3 shows that student will buy more education after a drop in its price because students’ wealth position improved and because the price of education decreased relative to other goods. The other way around, an increase in tuition fees can lead23 to a reduction in the amount of education bought because of a 23 Income and substitution affects not always have to reinforce each other. For inferior goods (if the price of the good goes up, people will consume more), the income and substitution effects work in Traditional economic approaches 55 decrease in the relative wealth of students (income effect), but also because other goods become more attractive in terms of their relative price (substitution effect).

Between 1996 and 2001 the relative proportions of applicants and students accepted from various social classes (based on parental education) remained remarkably stable (UCAS, 2003). These findings would suggest that the introduction of tuition fees did not harm access. However, the National Union of Students (NUS, 2000) claims that fees and loans most certainly prevented students with disadvantaged backgrounds from applying to higher education. Recent research shows that students’ resource mixes have changed considerably over time.

Other surveys have looked at the effects of HECS on individual attitudes with respect to higher education decisions. Robertson et al. (1990) found little effect of 15 This section is primarily based on: Hans Vossensteyn and Erik Canton (2001), Tuition fees and accessibility: The Australian HECS, in: CPB/CHEPS, Higher Education Reform: Getting the Incentives Right, Den Haag: Sdu Uitgevers. Student choice research: a literature review 41 HECS on the composition of applicant pools and no effect on those actually enrolling.

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