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Resident and Nonresident Tuition and Enrollment at Flagship State Universities

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Author Info
Michael J. Rizzo
Ronald G. Ehrenberg

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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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Paper provided by National Bureau of Economic Research, Inc in its series NBER Working Papers with number 9516.

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Date of creation: Feb 2003
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Handle: RePEc:nbr:nberwo:9516

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I2 - Health, Education, and Welfare - - Education

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References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
  1. Ronald G. Ehrenberg & Daniel R. Sherman, 1984. "Optimal Financial Aid Policies for a Selective University," NBER Working Papers 1014, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
  2. 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. [Downloadable!] (restricted)
  3. 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. [Downloadable!]
  4. 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. [Downloadable!] (restricted)
  5. Siow, Aloysius, 1997. "Some evidence on the signalling role of research in academia," Economics Letters, Elsevier, vol. 54(3), pages 271-276, July. [Downloadable!] (restricted)
  6. Rajindar K. Koshal, Manjulika Koshal, 2000. "State Appropriation and Higher Education Tuition: what is the relationship?," Education Economics, Taylor and Francis Journals, vol. 8(1), pages 81-89, April. [Downloadable!] (restricted)
  7. Susan Dynarski, 2002. "The Consequences of Merit Aid," NBER Working Papers 9400, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
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  8. 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.. [Downloadable!] (restricted)
  9. 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. [Downloadable!] (restricted)
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  10. 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. [Downloadable!] (restricted)
  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. [Downloadable!] (restricted)
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Cited by:
(explanations, Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.)

  1. Larry D. Singell & Glen R. Waddell & Bradley R. Curs, 2004. "Hope for the Pell? The Impact of Merit-Aid on Needy Students," University of Oregon Economics Department Working Papers 2004-5, University of Oregon Economics Department. [Downloadable!]
  2. 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. [Downloadable!] (restricted)
  3. 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. [Downloadable!]
  4. Larry D. Singell & Joe A. Stone, 2003. "For Whom the Pell Tolls: Market Power, Tuition Discrimination, and the Bennett Hypothesis," University of Oregon Economics Department Working Papers 2003-12, University of Oregon Economics Department. [Downloadable!]
  5. 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). [Downloadable!]
  6. Michael J. Rizzo, 2005. "The public interest in higher education," Proceedings, Federal Reserve Bank of Cleveland, pages 19-45. [Downloadable!]
  7. Orkodashvili, Mariam, 2007. "Higher Education Funding Issues: U.S. / UK Comparison," MPRA Paper 16417, University Library of Munich, Germany. [Downloadable!]
  8. Orkodashvili, Mariam, 2008. "Reversing the Balance Wheel Principle," MPRA Paper 16401, University Library of Munich, Germany. [Downloadable!]
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