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An empirical examination of the Bennett hypothesis in law school prices

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  • Kelchen, Robert

Abstract

Whether colleges increase tuition in response to increased federal student loan limits (the Bennett Hypothesis) has been a topic of debate in the higher education community for decades, yet most studies have been based on small increases to Pell Grant or undergraduate student loan limits. In this paper, I leverage a large increase in graduate student lending limits that took place in 2006 followed by an expansion of federal income-driven repayment programs to examine whether law schools responded by raising tuition and whether student debt levels also increased. Using data from 2001 to 2015 across public and private law schools and both interrupted time series and difference-in-differences analytical techniques, I found rather modest relationships across both public and private nonprofit law schools. I conclude with some possible explanations for the lack of strong empirical support for the Bennett Hypothesis.

Suggested Citation

  • Kelchen, Robert, 2019. "An empirical examination of the Bennett hypothesis in law school prices," Economics of Education Review, Elsevier, vol. 73(C).
    • Handle: RePEc:eee:ecoedu:v:73:y:2019:i:c:s0272775718306630
    DOI: 10.1016/j.econedurev.2019.101915
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    References listed on IDEAS

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    1. Lance Lochner & Alexander Monge-Naranjo, 2012. "Credit Constraints in Education," Annual Review of Economics, Annual Reviews, vol. 4(1), pages 225-256, July.
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    7. Caroline Minter Hoxby, 2004. "Introduction to "College Choices: The Economics of Where to Go, When to Go, and How to Pay For It"," NBER Chapters, in: College Choices: The Economics of Where to Go, When to Go, and How to Pay For It, pages 1-12, National Bureau of Economic Research, Inc.
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    Cited by:

    1. Karen L. Webber & Rachel Burns, 2021. "Increases in Graduate Student Debt in the US: 2000 to 2016," Research in Higher Education, Springer;Association for Institutional Research, vol. 62(5), pages 709-732, August.

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    More about this item

    Keywords

    Bennett Hypothesis; Tuition; Student debt; Law schools;
    All these keywords.

    JEL classification:

    • C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models
    • H52 - Public Economics - - National Government Expenditures and Related Policies - - - Government Expenditures and Education
    • I22 - Health, Education, and Welfare - - Education - - - Educational Finance; Financial Aid
    • I23 - Health, Education, and Welfare - - Education - - - Higher Education; Research Institutions
    • I28 - Health, Education, and Welfare - - Education - - - Government Policy

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