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Financing and Enrollments in Public Universities

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  • Nattanicha Chairassamee
  • Oudom Hean

Abstract

State budget cuts have raised concerns about the disproportionate enrolment of out-of-state students. These students pay higher tuition fees at public universities. We investigate the decision-making of public universities about in-state and out-of-state enrolments by considering tuition rates as a financial incentive. We find that out-of-state enrolment is elastic, while in-state enrolment is relatively less elastic. Universities participating in reciprocity programs show that local student share is relatively insensitive to tuition changes; however, non-local student enrolments are more sensitive to these tuition changes. Overall, there is no evidence of the crowding-out effect on local student enrolment.

Suggested Citation

  • Nattanicha Chairassamee & Oudom Hean, 2024. "Financing and Enrollments in Public Universities," Applied Economics, Taylor & Francis Journals, vol. 56(7), pages 812-825, February.
    • Handle: RePEc:taf:applec:v:56:y:2024:i:7:p:812-825
    DOI: 10.1080/00036846.2023.2173362
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