Laura Romero

Research interests

  • Interests
    Fiscal Policy

Publications

  • COMPETITION BETWEEN PUBLIC AND PRIVATE UNIVERSITIES: QUALITY, PRICES AND EXAMS

    Laura Romero, Elena del Rey

    12/2004;

    The rapid growth of private higher education in response to high demand is a recent phenomenon in most European countries. This paper provides a theoretical model of the higher education market in which a public and a private university compete for students in the presence of borrowing constraints. ... [more] The rapid growth of private higher education in response to high demand is a recent phenomenon in most European countries. This paper provides a theoretical model of the higher education market in which a public and a private university compete for students in the presence of borrowing constraints. We find that there exists a unique equilibrium in which the public institution is of higher quality than the private institution. This result supports the observation across many European countries that public universities have usually higher quality and admission standards than their private competitors.
  • Prices versus Exams as Strategic Instruments for Competing Universities

    Elena del Rey, Laura Romero

    11/2004;

    In this paper we investigate the optimal choice of prices and/or exams by universities in the presence of credit constraints. We first compare the optimal behavior of a public, welfare maximizing, monopoly and a private, profit maximizing, monopoly. Then we model competition between a public and a p... [more] In this paper we investigate the optimal choice of prices and/or exams by universities in the presence of credit constraints. We first compare the optimal behavior of a public, welfare maximizing, monopoly and a private, profit maximizing, monopoly. Then we model competition between a public and a private institution and investigate the new role of exams/prices in this environment. We find that, under certain circumstances, the public university may have an interest to rise tuition fees from minimum levels if it cares for global welfare. This will be the case provided that (i) the private institution has higher quality and uses only prices to select applicants, or (ii) the private institution has lower quality and uses also exams to select students. When this is the case, there are efficiency grounds for raising public prices.
  • Competition between public and Private Universities: Prices versus Exams

    Elena del Rey, Laura Romero

    Hacienda pública y convergencia europea : X Encuentro de Economía Pública, Santa Cruz de Tenerife 2003, 2003-01-01, ISBN 84-688-0752-4.

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Publications