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American Economic Review Vol. 104 No. 5 2014

The Economics of Online Postsecondary Education: MOOCs, Nonselective Education, and Highly Selective Education

Caroline Hoxby

Department of Economics, Stanford University, 579 Serra Mall, Stanford, CA 94305 (e-mail: ).

Abstract

I consider economically sustainable online postsecondary education, including massive open online courses (MOOCs). The analysis suggests that MOOCs will be financially sustainable substitutes for some non-selective postsecondary education, but there are substantial risks. The analysis suggests that MOOCs will be financially sustainable substitutes for only a small share of highly selective postsecondary education (HSPE) and are likely to collapse the economic model that allows HSPE institutions to invest in advanced education and research. I outline a non-MOOC model of online education that may allow HSPE institutions to sustain their distinctive activities and to reach a larger number of students.

DOI
10.1257/aer.104.5.528
Volume
104
Issue
5
Pages
528-533
Language
en
Sources
bibtex:phds-export.bib openalex crossref

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