An Economic Rationalization Framework for Higher Education


  • Jezyl C. Cutamora Cebu Normal University College of Nursing
  • Roberto Padua



rationalization framework, HEIs, subsidy, data mining


The marginal rate of returns (MRR) of higher education programs affect a country’s economy. It is in this light that the current study primarily intends to determine which higher education programs the state should fully subsidize and which programs the private education service providers should take charge of. The net effect of this identification is to rationalize the supply side of the economy. Quantitative non-experimental retrospective explanatory design and data mining techniques were used. Consequently, based on the programs’ marginal rate of returns, indeed there are certain higher education services that bring about public good while some others do not. Agriculture, services, humanities and arts, sciences, health and welfare, engineering, manufacturing and construction, and education programs demonstrate greater public good while social sciences, business, and law generally promote greater private returns to the individuals rather than to the society.

Author Biographies

Jezyl C. Cutamora, Cebu Normal University College of Nursing

Associate Professor IV in the College of NUrsing

Roberto Padua

Former CHED Commissioner


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How to Cite

Cutamora, J. C., & Padua, R. (2020). An Economic Rationalization Framework for Higher Education. Recoletos Multidisciplinary Research Journal, 8(1), 43–65.