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Citation Information

Type Journal Article - Journal of Public Economics
Title The willingness to pay for education in developing countries: Evidence from rural Peru
Volume 42
Issue 3
Publication (Day/Month/Year) 2002
Page numbers 251-275
URL http://www.sciencedirect.com/science/article/B6V76-458WNYJ-3V/2/3b690d3f6a5ff13f05e0f3a4de95420b
Citing low price elasticities of demand for schooling, some economists have recently advocated increasing school fees to raise revenue for educational improvements in developing countries. But elasticities alone are not enough - one must estimate the willingness to pay for schooling improvements to see whether higher fees are in fact desirable. Using a rigorous model of the demand for schooling, we calculate willingness to pay for new secondary schools in rural Peru. We find that rural Peruvian households at all income levels are indeed willing to pay fees high enough to cover the operating costs of new schools in their villages.

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