Australian Health & Human Capital Economics Seminar | The Consumption Value of College
Welcome back to the Virtual Australian Health & Human Capital Economics Seminar Series, which goes into its second year. This event is organised by A/Professor Victoria Baranov (UMelb), Dr Sarah Walker (UNSW), Professor Stefanie Schurer (USyd), Dr Rebecca McKibbin (USyd), Professor Adeline Delavande (UTS), and Professor Brenda Gannon (UQ).
The seminar series is open to the public. Sign up HERE for mailing list.
The Consumption Value of College
University of California, Berkeley
Wednesday 9 November
9.00am – 10.00am
Abstract: This paper uses the Euler equation and novel data from Berea College students on their consumption expenditures during and after college, desired borrowing amounts, beliefs about post-college earnings, and elicited risk-aversion and time preference parameters to determine their consumption value of college attendance. Estimates suggest an average annual consumption value of college as high as $15,110 with considerable heterogeneity across students. Accounting for these benefits raises the average expected return to college by as much as 18% and substantially lowers the estimated willingness-to-pay for higher student loan limits.