TAILIEUCHUNG - What is a high school worth?: A model of Australian private secondary school fees

An appropriate level and quality of infrastructure is an important contributor to economic growth. Robust, internationally consistent data on infrastructure quality are diffi cult to obtain. Whenever possible, objective data have been used but this section still relies on some international surveys of business perceptions of infrastructure quality, which need to be interpreted with caution. New Zealand is perceived as having lower-quality infrastructure than the OECD mean. In the 2010–2011 Global Competitiveness Report, New Zealand moved from 34th out of 125 countries in 2007 to 45th out of 133 countries (21st in the OECD). Similarly, Mercer rated infrastructure in. | THE UNIVERSITY OF MELBOURNE Department of Economics Working Paper Series What is a high school worth A model of Australian private secondary school fees J. N. Lye and J. G. Hirschberg Sept 2012 Research Paper Number 1161 ISSN 0819 2642 ISBN 978 0 7340 4512 6 Department of Economics The University of Melbourne Parkville VIC 3o10 What is a high school worth A model of Australian private secondary school fees J. N. Lye and J. G. Hirschberg1 Abstract Over the last few decades there have been significant increases in student enrolments in Australian non-government schools. It has been suggested that this growth has been the outcome of government subsidies to non-government schools. Despite this significant funding school fees have also been increasing. In this paper we examine these changes for Victoria and look at a number of comparisons between government and non-government schools. In addition rather than examining the determinants of school selection we examine the determinants of fees at non-government schools by estimating a hedonic price model. We conclude that the characteristics of the schools such as university entrance performance do have a positive impact on the fees. In addition we determine that the socioeconomic status of the other students has a positive impact as well as the scale of the school as measured by the number of staff the variety of the offerings and the age of the school all have a positive impact. 1 Department of Economics University of Melbourne Melbourne Vic 3010. 1. Introduction In most of Australa parents have three options for their children s secondary school government Catholic and independent. In this paper we examine the characteristics of the non-government schools in the Australian state of Victoria to establish to what extent the characteristics of the school are important to the parents and how they are valued. In order to do this we estimate an hedonic price model for the fees paid for senior .

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