Date of Award
Bachelor of Arts
cost, education, college, higher, phillips
The relationship between the value of a college education and the price of the diploma is explored for exuberance in light of the accelerating growth rate of college tuition. With the Great Recession of 2007 still in on the minds of the American public, bubble formation and the subsequent burst is a concern for future economic stability. Discussion on the presence of a higher education bubble continues to increase however it has yet to be quantitatively assessed. This paper utilizes a modified price-dividend ratio, tailored for higher education, implemented in the econometric model for bubble detection developed by Phillips, Wu and Yu (2011) and Phillips, Shi and Yu (2013). The results from this study suggest the presence of bubble activity during the sample period, although there is inconsistency in the date-stamping process.
Birnbaum, Kyle, "Quantitative Assessment of the Presence of a Bubble in the Higher Education Market" (2016). Honors Theses. 273.