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The Sensitivity of Capital Use to Price in Higher Education

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Author Info
Malcolm Getz () (Department of Economics, Vanderbilt University, Nashville, TN 37235-1819, USA; Tel.: +1-615-322-3425; Fax: 1-615-343-8495)
John J. Siegfried

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Abstract

We test whether U.S. colleges and universities adjust their physical capital intensity to differences in factor prices by regressing the square feet of space per student on construction prices across institutions. The results indicate that physical space at selective liberal arts colleges and private comprehensive universities is unresponsive to relative factor prices but do reflect differences in institutional wealth. At public comprehensive universities and two-year colleges the evidence suggests that students enjoy more space per student where building costs are lower.

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Publisher Info
Article provided by Springer in its journal Review of Industrial Organization.

Volume (Year): 24 (2004)
Issue (Month): 4 (06)
Pages: 379-391
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Handle: RePEc:kap:revind:v:24:y:2004:i:4:p:379-391

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Web page: http://www.springerlink.com/link.asp?id=100336

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  1. Getz, Malcolm & Siegfried, John J. & Zhang, Hao, 1991. "Estimating economies of scale in higher education," Economics Letters, Elsevier, vol. 37(2), pages 203-208, October. [Downloadable!] (restricted)
  2. Winston, G.C. & Yen, I.C., 1995. "Costs, Prices, Subsidies, and Aid in U.S. Higher Education," Williams Project on the Economics of Higher Education 32, Department of Economics, Williams College.
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This page was last updated on 2009-11-25.

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