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Resident and Nonresident Tuition and Enrollment at Flagship State Universities

In: College Choices: The Economics of Where to Go, When to Go, and How to Pay For It

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  • Michael Rizzo
  • Ronald G. Ehrenberg

Abstract

We address the determinants of resident and nonresident tuition and enrollment at public universities. A key explanatory variable is the share of out-of-state students enrolled under reciprocity agreements. We find that public universities use out-of-state enrollments primarily to augment student quality, not to make up for losses in state appropriations.In the main out-of-state enrollment levels are relatively insensitive to out-of-state tuition levels charged by institutions. Finally, we find no evidence that public universities increase their in-state or out-of-state tuition levels in response to increased federal or state financial aid for students.

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This chapter was published in:

  • Caroline M. Hoxby, 2004. "College Choices: The Economics of Where to Go, When to Go, and How to Pay For It," NBER Books, National Bureau of Economic Research, Inc, number hoxb04-1.
    This item is provided by National Bureau of Economic Research, Inc in its series NBER Chapters with number 10103.

    Handle: RePEc:nbr:nberch:10103

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    1. Dynarski, Susan, 2002. "The Consequences of Merit Aid," Working Paper Series rwp02-051, Harvard University, John F. Kennedy School of Government.
    2. Bezmen, Trisha & Depken II, Craig A., 1998. "School Characteristics and the Demand for College," Economics of Education Review, Elsevier, vol. 17(2), pages 205-210, April.
    3. Siow, Aloysius, 1997. "Some evidence on the signalling role of research in academia," Economics Letters, Elsevier, vol. 54(3), pages 271-276, July.
    4. Lowry, Robert C., 2001. "The effects of state political interests and campus outputs on public university revenues," Economics of Education Review, Elsevier, vol. 20(2), pages 105-119, April.
    5. Balderston, Frederick, 1997. "Tuition and financial aid in higher education: The case of California," Economics of Education Review, Elsevier, vol. 16(3), pages 337-343, June.
    6. Rajindar Koshal & Manjulika Koshal, 2000. "State Appropriation and Higher Education Tuition: What is the relationship?," Education Economics, Taylor & Francis Journals, vol. 8(1), pages 81-89.
    7. 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.
    8. Ronald G. Ehrenberg & Daniel R. Sherman, 1984. "Optimal Financial Aid Policies for a Selective University," Journal of Human Resources, University of Wisconsin Press, vol. 19(2), pages 202-230.
    9. Charles T. Clotfelter & Ronald G. Ehrenberg & Malcolm Getz & John J. Siegfried, 1991. "Economic Challenges in Higher Education," NBER Books, National Bureau of Economic Research, Inc, number clot91-1.
    10. Gordon C. Winston, 1999. "Subsidies, Hierarchy and Peers: The Awkward Economics of Higher Education," Journal of Economic Perspectives, American Economic Association, vol. 13(1), pages 13-36, Winter.
    11. Caroline M. Hoxby, 1997. "How the Changing Market Structure of U.S. Higher Education Explains College Tuition," NBER Working Papers 6323, National Bureau of Economic Research, Inc.
    12. John M. Quigley & Daniel L. Rubinfeld, 1993. "Public Choices in Public Higher Education," NBER Chapters, in: Studies of Supply and Demand in Higher Education, pages 243-284 National Bureau of Economic Research, Inc.
    13. Peltzman, Sam, 1973. "The Effect of Government Subsidies-in-Kind on Private Expenditures: The Case of Higher Education," Journal of Political Economy, University of Chicago Press, vol. 81(1), pages 1-27, Jan.-Feb..
    14. Dominic J. Brewer & Eric Eide & Ronald G. Ehrenberg, 1996. "Does It Pay To Attend An Elite Private College? Cross Cohort Evidence on the Effects of College Quality on Earnings," NBER Working Papers 5613, National Bureau of Economic Research, Inc.
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    Cited by:
    1. Michael J. Rizzo, 2005. "The public interest in higher education," Proceedings, Federal Reserve Bank of Cleveland, pages 19-45.
    2. Dwenger, Nadja & Storck, Johanna & Wrohlich, Katharina, 2009. "Do Tuition Fees Affect the Mobility of University Applicants? Evidence from a Natural Experiment," IZA Discussion Papers 4421, Institute for the Study of Labor (IZA).
    3. Singell, Larry Jr. & Stone, Joe A., 2007. "For whom the Pell tolls: The response of university tuition to federal grants-in-aid," Economics of Education Review, Elsevier, vol. 26(3), pages 285-295, June.
    4. Stephanie Riegg Cellini, 2010. "Financial aid and for-profit colleges: Does aid encourage entry?," Journal of Policy Analysis and Management, John Wiley & Sons, Ltd., vol. 29(3), pages 526-552.
    5. Matthew Nagler, 2008. "Funding Shocks and Optimal University Admissions and Financial Aid Policies," Atlantic Economic Journal, International Atlantic Economic Society, vol. 36(3), pages 345-358, September.
    6. Orkodashvili, Mariam, 2008. "Reversing a Balance Wheel Principle and Changing a Roller Coaster Pattern," MPRA Paper 16401, University Library of Munich, Germany.
    7. Fethke, Gary, 2011. "Welfare effects of subsidizing higher education when access and quality are endogenous," Economics Letters, Elsevier, vol. 112(1), pages 45-48, July.
    8. Hemelt, Steven W. & Marcotte, Dave E., 2008. "Rising Tuition and Enrollment in Public Higher Education," IZA Discussion Papers 3827, Institute for the Study of Labor (IZA).
    9. Turner, Nick, 2010. "Who Benefits From Student Aid? The Economic Incidence of Tax-Based Federal Student Aid," University of California at San Diego, Economics Working Paper Series qt7g0888mj, Department of Economics, UC San Diego.
    10. Orkodashvili, Mariam, 2007. "Higher Education Funding Issues: U.S. / UK Comparison," MPRA Paper 16417, University Library of Munich, Germany.
    11. Joan Rosselló, 2007. "Does a public university system avoid the stratification of public universities and the segregation of students?," DEA Working Papers 26, Universitat de les Illes Balears, Departament d'Economía Aplicada.
    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.

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