Determinants of private demand - ability to pay, Microeconomics

Determinants of Private Demand - Ability to Pay

In a developing country like India, of all the factors determining investments in education, the most important factor is the ‘ability to pay’. The ability to pay for higher education is in turn determined by a number of other factors such as level of family income, size of the family, number of children in schools and colleges, and gender composition of children. Indian society is heterogeneous in terms of the ability of families to pay for higher education.

There have been very few studies which have focused on this phenomenon. A study by Meerman (1974) which looked into this feature for the Malaysian population reveals that as a proportion of total consumption expenditure, 18 per cent was spent on education by households from the lowest income groups. For the same services (education), the highest income groups spent 6 per cent of their incomes. Another significant finding was that while lowest income groups had 2.75 children per family studying in primary and secondary stages, the highest income groups had 1.25 children per family studying in these stages.

This suggests that the sacrifices made by a low income household to contribute one educated person to society is far higher than that by a high income household. Studies focusing on the relative abilities of people to pay for education in India are practically ‘nil’. Still the implications of the findings from Malaysia to the policy makers in charge of subsidising public education in India should be quite clear as the capacity of people to buy education in India is highly skewed in favour of upper classes of society.

Posted Date: 12/17/2012 4:23:30 AM | Location : United States







Related Discussions:- Determinants of private demand - ability to pay, Assignment Help, Ask Question on Determinants of private demand - ability to pay, Get Answer, Expert's Help, Determinants of private demand - ability to pay Discussions

Write discussion on Determinants of private demand - ability to pay
Your posts are moderated
Related Questions
Devil's Advocate Explicit role undertaken by a group member who actively questions and challenges the group's ideas, procedure, and decisions. Such active questioning helps de

Write the formulas to show the reactants and products for the following reactions. Assume that solutions are aqueous unless otherwise indicated. Represent substances in solutions a

what is budget line?show the shift in the budget line

Normal 0 false false false EN-IN X-NONE X-NONE MicrosoftInternetExplorer4

1) What are the most important challenges that economists try to address? (2) What is the role of government in a market based economy?  (3) Who are the main economic players


Features of monopolistic competition: Large number of firms in the industry. There are many small firms each supplying only a small share of the total market output. Hence, no

Normal 0 false false false EN-IN X-NONE X-NONE MicrosoftInternetExplorer4

COBWEB MODEL: Concept of dynamic stability: A market equilibrium is said to dynamically stable only when disequilibrium price and quantity move and over time reach to any eq

INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT: The main function of the IBRD is of long-term capital assistance to its member-countries for their reconstruction and de