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The Sensitivity of Capital Use to Price in Higher Education

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Author Info
Malcolm Getz () (Deparment of Economics, Vanderbilt Unversity)
John J. Siegfried () (Department of Economics, Vanderbilt University)

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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. At public universities comprehensive universities the evidence suggests that students enjoy more space where building costs are lower. We are unable to explain a relationship for two-year colleges.

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File URL: http://www.vanderbilt.edu/Econ/wparchive/workpaper/vu04-w05.pdf
File Format: application/pdf
File Function: First version, 2004
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Publisher Info
Paper provided by Department of Economics, Vanderbilt University in its series Working Papers with number 0405.

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Date of creation: Feb 2004
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Handle: RePEc:van:wpaper:0405

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Related research
Keywords: factor price effects on college input ratios;

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Find related papers by JEL classification:
I21 - Health, Education, and Welfare - - Education - - - Analysis of Education
L23 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Organization of Production

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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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