Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/73813
Authors: 
Lange, Thomas
Year of Publication: 
2009
Series/Report no.: 
Ifo Working Paper 74
Abstract: 
The paper presents a model of student migration in order to determine the optimal choice of non-resident tuition fees in a host country of higher education. Students with rational expectations consider a potential return migration in their first-round decision whether to study abroad, so that demand for the higher education system in the host country and optimal non-resident tuition fees depend on the stay rates of foreign-born graduates.A decline in stay rates of foreign students is demonstrated to induce a cutback of tuition fees if the costs of education per student are not too high. The fact that students take into account the possibility of return migration after graduation in their first-stage location decision in combination with rational expectations finally drives this result.
Subjects: 
tuition fees
oversea students
return migration
rational expectations
brain drain
preference for foreign lifestyle
JEL: 
D84
F22
I29
Document Type: 
Working Paper

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