University Behavior under Borrowing Constraints: The Effect of Students' Abilities Distribution

The interaction between a university and potential students is examined under the assumptions of financial constraints and of students' abilities following the pattern of a triangular distribution. Subsequently, a comparative statics analysis in terms of welfare and vectors composed of three co...

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Main Author: Bralind Kiri
Format: Article
Language:English
Published: Editura Universităţii „Alexandru Ioan Cuza” din Iaşi / Alexandru Ioan Cuza University of Iasi Publishing house 2021-06-01
Series:Scientific Annals of Economics and Business
Subjects:
Online Access:http://saeb.feaa.uaic.ro/index.php/saeb/article/view/1617
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author Bralind Kiri
author_facet Bralind Kiri
author_sort Bralind Kiri
collection DOAJ
description The interaction between a university and potential students is examined under the assumptions of financial constraints and of students' abilities following the pattern of a triangular distribution. Subsequently, a comparative statics analysis in terms of welfare and vectors composed of three components – namely quality, tuition fee and ability threshold – is provided. Results suggest that the mode of the distribution is an intrinsic part of equilibria, and that a human capital maximizing university makes additional efforts in terms of pricing and non-pricing strategies in order to alleviate the inconveniences arising due to financial constraints and non-uniformity in the distribution of students' abilities.
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language English
last_indexed 2024-12-13T20:17:23Z
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publisher Editura Universităţii „Alexandru Ioan Cuza” din Iaşi / Alexandru Ioan Cuza University of Iasi Publishing house
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series Scientific Annals of Economics and Business
spelling doaj.art-f38f154d92b242fb89360a6ee4102f152022-12-21T23:32:47ZengEditura Universităţii „Alexandru Ioan Cuza” din Iaşi / Alexandru Ioan Cuza University of Iasi Publishing houseScientific Annals of Economics and Business2501-31652501-31652021-06-0168224926210.47743/saeb-2021-0008200University Behavior under Borrowing Constraints: The Effect of Students' Abilities DistributionBralind Kiri0University of SalamancaThe interaction between a university and potential students is examined under the assumptions of financial constraints and of students' abilities following the pattern of a triangular distribution. Subsequently, a comparative statics analysis in terms of welfare and vectors composed of three components – namely quality, tuition fee and ability threshold – is provided. Results suggest that the mode of the distribution is an intrinsic part of equilibria, and that a human capital maximizing university makes additional efforts in terms of pricing and non-pricing strategies in order to alleviate the inconveniences arising due to financial constraints and non-uniformity in the distribution of students' abilities.http://saeb.feaa.uaic.ro/index.php/saeb/article/view/1617triangular distribution of abilitiesborrowing constraintseducation qualitytuition fees.
spellingShingle Bralind Kiri
University Behavior under Borrowing Constraints: The Effect of Students' Abilities Distribution
Scientific Annals of Economics and Business
triangular distribution of abilities
borrowing constraints
education quality
tuition fees.
title University Behavior under Borrowing Constraints: The Effect of Students' Abilities Distribution
title_full University Behavior under Borrowing Constraints: The Effect of Students' Abilities Distribution
title_fullStr University Behavior under Borrowing Constraints: The Effect of Students' Abilities Distribution
title_full_unstemmed University Behavior under Borrowing Constraints: The Effect of Students' Abilities Distribution
title_short University Behavior under Borrowing Constraints: The Effect of Students' Abilities Distribution
title_sort university behavior under borrowing constraints the effect of students abilities distribution
topic triangular distribution of abilities
borrowing constraints
education quality
tuition fees.
url http://saeb.feaa.uaic.ro/index.php/saeb/article/view/1617
work_keys_str_mv AT bralindkiri universitybehaviorunderborrowingconstraintstheeffectofstudentsabilitiesdistribution