The economics of the University of the Air of Japan revisited

In 1988 UAJ completed the first phase of its initial plan, thus enabling an assessment of the cost-effectiveness of UAJ and a forecast of its future based on available data. The cost per student at UAJ is 2/5, 1/2, and 3/4 of that at national, public, and day programs of private universities, and 1.1 times and 6.7 times of that at evening and correspondence programs of private universities repectively. The projected cost per graduate is slightly lower than that at national universities and 1.1, 1.9 and 2.3 times of that at public, correspondence and day, and evening programs of private universities respectively. The cost per credit is 1.3, 1.5, 2.2, 2.4 and 4.6 times of national and public universities, day, evening, and correspondence programs of private universities respectively.The simulations indicate that the cost per credit can be decreased by expanding the operation of UAJ to a nationwide scale, employing a surface circuit or satellite system; however, it is necessary that the number of students be doubled in order to make the cost per credit equivalent to that at public universities. However, even when the number of students is four times, the cost per credit is not equivalent to that at day programs of private universities regardless of what method is used. Although the current cost per credit is higher than that of conventional universities, changes in cummunication technology and student characteristics could alter the cost-effectiveness of UAJ.