This dissertation examines the factors affecting consumer choice in education and health care. The first study relates to education choice in considering the value of a community college compared to a four-year university. Community colleges are less expensive, so a student might choose to attend community college for the first two years of a baccalaureate degree. However, there is a concern that the quality of education at a community college is lower. The first paper investigates whether students who take introductory macroeconomics and microeconomics courses at a community college perform as well as students taking the introductory sequence at a four-year university when the rigor of instruction is held constant. This study estimates a production function with correction for students dropping the course using a Heckman two-step process to determine which variables affect student performance.

In the second paper, data from the National Director’s Cup is used to investigate whether success in athletics affects the quality and quantity of applications an educational institution receives. Many college-bound high school students choose which university to attend based on a collection of institutional attributes such as academic quality, tuition, financial aid and overall success in athletics. Although athletics may not influence enrollments, applications or test scores, there is evidence that overall athletic success influences the premium that public universities charge their out-of-state students on tuition.

Lastly, individuals who become ill must choose what type of primary care provider to utilize. In the third paper, data from the National Health Interview Survey is used to investigate whether individuals prefer to use clinics, doctor’s offices or emergency rooms for their source of health care. Results indicated that most people preferred to have a regular doctor, but the absence/loss of health insurance, lower income and lower education levels caused people to use clinics or emergency rooms as their primary source of care.