With such a large number of observations from jurisdictions with differing fee and subsidy settings, a national pricing model for government funded Vocational Education and Training (VET) qualifications can be built by applying econometric models to the data available in the average price benchmark database.
An econometric estimation may be used both to estimate prices for government funded VET qualifications; and to understand the variation in prices, testing the hypothesis that prices are driven by observed characteristics.
For instance, the extent to which nominal hours are a key driver of price may be tested through an econometric specification. It is a feature of the Australian VET system that qualifications at the same AQF level and within the same field of education can have vastly different nominal hours attached, despite having the same volume of learning requirements under the AQF.
The NSC has been developing and testing a model that estimates a qualification price, given a set of nominal hours, field of education, AQF level and apprenticeship/traineeship characteristics. The results of this analysis will be presented in a standalone paper.