Determinants of private demand - ability to pay, Microeconomics

Assignment Help:

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.


Related Discussions:- Determinants of private demand - ability to pay

Approaches in attaining higher satisfaction, What are the 2 approaches in ...

What are the 2 approaches in which results into a higher satisfaction?

Compare and contrast the macroeconomic performances , 1. Assessment Criteri...

1. Assessment Criteria The coursework will be marked on the overall outcome including: structure, quality of reasoning, quality of written English, data analysis, referencing, sty

Choosing inputs to minimize cost, Choosing Inputs  How to minimize ...

Choosing Inputs  How to minimize cost for the given level of output. We can do so by combining Isocosts with Isoquants                              Producing a

Explain the monopolistic excess capacity, Theories of Chamberlin’s monopoli...

Theories of Chamberlin’s monopolistic competition and Joan Robinson’s imperfect competition have revealed that a firm under monopolistic competition or imperfect competition in lon

Measures used to restrict international trade, Measures used to restrict In...

Measures used to restrict International Trade: These are taxes imposed on traded commodities as they cross national boarders. These are two main types of tariffs. An import ta

Consumer choice, Consumer Choice   * Consumers choose a combination of g...

Consumer Choice   * Consumers choose a combination of goods which will maximize satisfaction they can attain, given the some degree of budget available to them. * The maximiz

Find tax revenue, The US government decides to subsidize solar panels. For ...

The US government decides to subsidize solar panels. For each unit sold, the government pays $T to the buyer. Using a graph, show how this subsidy affects i) consumer surplus, ii)

Externalities, Assignment: Externalities •Consider the following scenario: ...

Assignment: Externalities •Consider the following scenario: The city council has just approved the construction of a water park in your town. As city economist, you are responsible

Calculate the profit maximizing price, Suppose you have 10 individuals with...

Suppose you have 10 individuals with values {$1, $2, $3, $4, $5, $6, $7, $8, $9, $10}.  Your marginal cost of production is $2.50.  What is the profit-maximizing price?  Using this

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd