IDEAS home Printed from https://ideas.repec.org/a/eee/ecoedu/v43y2014icp21-35.html
   My bibliography  Save this article

Localized competition in the non-resident student market

Author

Listed:
  • Gonzalez Canche, Manuel Sacramento

Abstract

The non-resident student market brings monetary resources to colleges and universities in the U.S. Previous research on price-setting has been predominantly limited to public institutions. This study offers geospatial indicators to capture local competition and influence from public and private 4-year not-for-profit colleges to attract non-resident students. Utilizing a dataset built from federal, state, and institutional information, the 2011–2012 non-resident tuition prices of 1780 institutions across the contiguous U.S. were modeled. Four different neighboring specifications were used to measure the influence of the 1st, 5th, 10th, and 20th closest institutions. The findings support that localized competition and influence exists. Institutions use variations in their tuition prices to compete locally and remain a marketable option for non-resident students. Heterogeneous neighboring structures affect tuition setting above and beyond spatial dependence. Institutions’ tuition price-setting benefit the most by competing against doctoral/research institutions. Fixed-effects and HLM techniques were incapable of handling spatial dependence.

Suggested Citation

  • Gonzalez Canche, Manuel Sacramento, 2014. "Localized competition in the non-resident student market," Economics of Education Review, Elsevier, vol. 43(C), pages 21-35.
    • Handle: RePEc:eee:ecoedu:v:43:y:2014:i:c:p:21-35
    DOI: 10.1016/j.econedurev.2014.09.001
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S027277571400079X
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.econedurev.2014.09.001?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Richard Adkisson & James Peach, 2008. "Non-resident enrollment and non-resident tuition at land grant colleges and universities," Education Economics, Taylor & Francis Journals, vol. 16(1), pages 75-88.
    2. Alm, James & Winters, John V., 2009. "Distance and intrastate college student migration," Economics of Education Review, Elsevier, vol. 28(6), pages 728-738, December.
    3. Joseph Calhoun & David Kamerschen, 2010. "The impact of governing structure on the pricing behavior and market structure of public institutions of higher education in the U.S," International Review of Economics, Springer;Happiness Economics and Interpersonal Relations (HEIRS), vol. 57(3), pages 317-333, September.
    4. A. Colin Cameron & Douglas L. Miller, 2010. "Robust Inference with Clustered Data," Working Papers 318, University of California, Davis, Department of Economics.
    5. Cora J. M. Maas & Joop J. Hox, 2004. "Robustness issues in multilevel regression analysis," Statistica Neerlandica, Netherlands Society for Statistics and Operations Research, vol. 58(2), pages 127-137, May.
    6. DANIEL P. McMILLEN & LARRY D. SINGELL & GLEN R. WADDELL, 2007. "Spatial Competition And The Price Of College," Economic Inquiry, Western Economic Association International, vol. 45(4), pages 817-833, October.
    7. James Mak & James E.T. Moncur, 2003. "Interstate migration of college freshmen," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 37(4), pages 603-612, December.
    8. Jeffrey M. Wooldridge, 2003. "Cluster-Sample Methods in Applied Econometrics," American Economic Review, American Economic Association, vol. 93(2), pages 133-138, May.
    9. Michael Rizzo & Ronald G. Ehrenberg, 2004. "Resident and Nonresident Tuition and Enrollment at Flagship State Universities," NBER Chapters, in: College Choices: The Economics of Where to Go, When to Go, and How to Pay For It, pages 303-354, National Bureau of Economic Research, Inc.
    10. Mixon, Franklin Jr & Hsing, Yu, 1994. "The determinants of out-of-state enrollments in higher education: A tobit analysis," Economics of Education Review, Elsevier, vol. 13(4), pages 329-335.
    11. A. Colin Cameron & Douglas L. Miller, 2010. "Robust Inference with Clustered Data," Working Papers 107, University of California, Davis, Department of Economics.
    12. Berger, Mark C. & Kostal, Thomas, 2002. "Financial resources, regulation, and enrollment in US public higher education," Economics of Education Review, Elsevier, vol. 21(2), pages 101-110, April.
    13. Misra, Kaustav & Grimes, Paul W. & Rogers, Kevin E., 2012. "Does competition improve public school efficiency? A spatial analysis," Economics of Education Review, Elsevier, vol. 31(6), pages 1177-1190.
    14. Yu Hsing & Franklin G. Mixon, Jr., 1996. "A Regional Study Of Net Migration Rates Of College Students," The Review of Regional Studies, Southern Regional Science Association, vol. 26(2), pages 197-209, Fall.
    15. Arthur Getis & Jared Aldstadt, 2010. "Constructing the Spatial Weights Matrix Using a Local Statistic," Advances in Spatial Science, in: Luc Anselin & Sergio J. Rey (ed.), Perspectives on Spatial Data Analysis, chapter 0, pages 147-163, Springer.
    16. Ghosh, Soma, 2010. "Strategic interaction among public school districts: Evidence on spatial interdependence in school inputs," Economics of Education Review, Elsevier, vol. 29(3), pages 440-450, June.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Manuel S. González Canché, 2017. "The Heterogeneous Non-resident Student Body: Measuring the Effect of Out-Of-State Students’ Home-State Wealth on Tuition and Fee Price Variations," Research in Higher Education, Springer;Association for Institutional Research, vol. 58(2), pages 141-183, March.
    2. Winters, John V., 2012. "Cohort crowding and nonresident college enrollment," Economics of Education Review, Elsevier, vol. 31(3), pages 30-40.
    3. Sibbertsen, Philipp & Stöver, Britta, 2017. "Die räumliche Flexibilität von Studierenden - Gründe für das Wanderungsverhalten von Studienanfänger/-innen zwischen den Bundesländern," Hannover Economic Papers (HEP) dp-604, Leibniz Universität Hannover, Wirtschaftswissenschaftliche Fakultät.
    4. John V. Winters, 2020. "In-State College Enrollment and Later Life Location Decisions," Journal of Human Resources, University of Wisconsin Press, vol. 55(4), pages 1400-1426.
    5. Sumaryanto & Sri Hery Susilowati & Fitri Nurfatriani & Herlina Tarigan & Erwidodo & Tahlim Sudaryanto & Henri Wira Perkasa, 2022. "Determinants of Farmers’ Behavior towards Land Conservation Practices in the Upper Citarum Watershed in West Java, Indonesia," Land, MDPI, vol. 11(10), pages 1-21, October.
    6. Hübler, Olaf, 2014. "Estimation of standard errors and treatment effects in empirical economics : methods and applications," Journal for Labour Market Research, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany], vol. 47(1-2), pages 43-62.
    7. Giovanna d’Adda, 2012. "Leadership and influence: Evidence from an artefactual field experiment on local public good provision," ECON - Working Papers 059, Department of Economics - University of Zurich.
    8. Entorf, Horst & Sattarova, Liliya, 2016. "The Analysis of Prison-Prisoner Data Using Cluster-Sample Econometrics: Prison Conditions and Prisoners' Assessments of the Future," IZA Discussion Papers 10209, Institute of Labor Economics (IZA).
    9. Diogo Lourenço & Carla Sá, 2019. "Spatial competition for students: What does (not) matter?," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 63(1), pages 147-162, August.
    10. Kathryn R. Dotzel, 2017. "Do natural amenities influence undergraduate student migration decisions?," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 59(3), pages 677-705, November.
    11. Matthew D. Webb, 2023. "Reworking wild bootstrap‐based inference for clustered errors," Canadian Journal of Economics/Revue canadienne d'économique, John Wiley & Sons, vol. 56(3), pages 839-858, August.
    12. Yuexing Lan & John V Winters, 2011. "Did the D.C. Tuition Assistance Grant Program Cause Out-of-State Tuition to Increase?," Economics Bulletin, AccessEcon, vol. 31(3), pages 2444-2453.
    13. Bo Zhao, 2018. "Disinvesting in the future?: a comprehensive examination of the effects of state appropriations for public higher education," Working Papers 18-1, Federal Reserve Bank of Boston.
    14. Ingela Alger & Laura Juarez & Miriam Juarez-Torres & Josepa Miquel-Florensa, 2020. "Do Informal Transfers Induce Lower Efforts? Evidence from Lab-in-the-Field Experiments in Rural Mexico," Economic Development and Cultural Change, University of Chicago Press, vol. 69(1), pages 107-171.
    15. Hirschauer, Norbert & Grüner, Sven & Mußhoff, Oliver & Becker, Claudia & Jantsch, Antje, 2020. "Can p-values be meaningfully interpreted without random sampling?," EconStor Open Access Articles and Book Chapters, ZBW - Leibniz Information Centre for Economics, vol. 14, pages 71-91.
    16. Pakel, Cavit, 2019. "Bias reduction in nonlinear and dynamic panels in the presence of cross-section dependence," Journal of Econometrics, Elsevier, vol. 213(2), pages 459-492.
    17. Bürker, Matthias & Franco, Chiara & Minerva, G. Alfredo, 2013. "Foreign ownership, firm performance, and the geography of civic capital," Regional Science and Urban Economics, Elsevier, vol. 43(6), pages 964-984.
    18. Matthias Bürker & G. Alfredo Minerva, 2014. "Civic capital and the size distribution of plants: short-run dynamics and long-run equilibrium," Journal of Economic Geography, Oxford University Press, vol. 14(4), pages 797-847.
    19. Huseynov, Samir & Palma, Marco A., 2018. "Does California’s LCFS Reduce CO2 Emissions?," 2018 Annual Meeting, August 5-7, Washington, D.C. 274200, Agricultural and Applied Economics Association.
    20. Hansen, Bruce E. & Lee, Seojeong, 2019. "Asymptotic theory for clustered samples," Journal of Econometrics, Elsevier, vol. 210(2), pages 268-290.

    More about this item

    Keywords

    Spatial econometrics; Geospatial statistics; Statistical analysis; Finance in higher education; Price-setting; Institutional influence and competition in Higher Education; Network of neighboring institutions;
    All these keywords.

    JEL classification:

    • I23 - Health, Education, and Welfare - - Education - - - Higher Education; Research Institutions
    • C31 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Cross-Sectional Models; Spatial Models; Treatment Effect Models; Quantile Regressions; Social Interaction Models
    • I22 - Health, Education, and Welfare - - Education - - - Educational Finance; Financial Aid

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:ecoedu:v:43:y:2014:i:c:p:21-35. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/econedurev .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.