摘要：This paper uses A-level Information System (ALIS) data to quantify the
determinants of the choice between Economics and Business Studies at A-level.
These subjects are often perceived as close curriculum options and possible
substitutes in the UK. Subject choice is modelled using an underlying latent
variable approach. On the basis of a series of counterfactual exercises an overall
average grade differential, a measure of their comparative difficulty, is estimated to
be 1.3 (old) UCAS points, equivalent to approximately two-thirds of a letter grade, in
favour of Business Studies.The estimating equation suggests that a unit increase in
the grade differential increases the probability of selecting Business Studies over
Economics by approximately 12 percentage points.There is evidence that females
are less likely to choose Economics over Business Studies and the more able
students, in terms of their average GCSE score and mathematical ability, are more
likely to select Economics.There is also some evidence of parental background
characteristics and ethnicity exerting significant effects on the choice between
these two subjects.
