The impact of merit-based financial aid on college enrollment: A field experiment
Merit-based financial aid awards have become increasingly prevalent in the pricing policies of higher education institutions. This study utilizes an experiment to estimate the efficacy of merit-aid awards in achieving the institutional objective of attracting the most academically desirable applicants. I find that merit aid has a statistically significant but inelastic effect on enrollment of extremely high ability students. Additionally, the setting of this paper allows for a test of whether students respond to the framing of price in making enrollment decisions (i.e. price illusion), holding net price constant. There is weak evidence in support of price illusion among this set of students.
If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
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.:
- Dynarski, Susan, 2004.
"The New Merit Aid,"
Working Paper Series
rwp04-009, Harvard University, John F. Kennedy School of Government.
- Amos Tversky & Daniel Kahneman, 1979.
"Prospect Theory: An Analysis of Decision under Risk,"
Levine's Working Paper Archive
7656, David K. Levine.
- Kahneman, Daniel & Tversky, Amos, 1979. "Prospect Theory: An Analysis of Decision under Risk," Econometrica, Econometric Society, vol. 47(2), pages 263-91, March.
- Christopher Avery & Caroline Minter Hoxby, 2004.
"Do and Should Financial Aid Packages Affect Students' College Choices?,"
in: College Choices: The Economics of Where to Go, When to Go, and How to Pay For It, pages 239-302
National Bureau of Economic Research, Inc.
- Christopher Avery & Caroline M. Hoxby, 2003. "Do and Should Financial Aid Packages Affect Students' College Choices?," NBER Working Papers 9482, National Bureau of Economic Research, Inc.
- David M. Linsenmeier & Harvey S. Rosen & Cecilia Elena Rouse, 2006.
"Financial Aid Packages and College Enrollment Decisions: An Econometric Case Study,"
The Review of Economics and Statistics,
MIT Press, vol. 88(1), pages 126-145, February.
- David M. Linsenmeier & Harvey S. Rosen & Cecilia Elena Rouse, 2002. "Financial Aid Packages and College Enrollment Decisions: An Econometric Case Study," NBER Working Papers 9228, National Bureau of Economic Research, Inc.
- Singell, Larry D, Jr & Stone, Joe A, 2002. "The Good, the Poor and the Wealthy: Who Responds Most to College Financial Aid?," Bulletin of Economic Research, Wiley Blackwell, vol. 54(4), pages 393-407, October.
- Rothschild, Michael & White, Lawrence J, 1995. "The Analytics of the Pricing of Higher Education and Other Services in Which the Customers Are Inputs," Journal of Political Economy, University of Chicago Press, vol. 103(3), pages 573-86, June.
- Bridget Terry Long, 2003.
"Does the Format of a Financial Aid Program Matter? The Effect of State In-Kind Tuition Subsidies,"
NBER Working Papers
9720, National Bureau of Economic Research, Inc.
- Bridget Terry Long, 2004. "Does the Format of a Financial Aid Program Matter? The Effect of State In-Kind Tuition Subsidies," The Review of Economics and Statistics, MIT Press, vol. 86(3), pages 767-782, August.
- Katharine G Abraham Melissa Clark, 2003.
"Financial Aid and Students College Decisions Evidence from the District of Columbias Tuition Assistance Grant Program,"
Mathematica Policy Research Reports
328d6cb850c54baa8e93795d5, Mathematica Policy Research.
- Katharine G. Abraham & Melissa A. Clark, 2006. "Financial Aid and Students’ College Decisions: Evidence from the District of Columbia Tuition Assistance Grant Program," Journal of Human Resources, University of Wisconsin Press, vol. 41(3).
- Katharine Abraham & Melissa A. Clark, 2003. "Financial Aid and Students' College Decisions: Evidence from the District of Columbia's Tuition Assistance Grant Program," NBER Working Papers 10112, National Bureau of Economic Research, Inc.
- Wilbert van der Klaauw, 2002. "Estimating the Effect of Financial Aid Offers on College Enrollment: A Regression-Discontinuity Approach," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 43(4), pages 1249-1287, November.
- Thomas J. Kane, 2007. "Evaluating the Impact of the D.C. Tuition Assistance Grant Program," Journal of Human Resources, University of Wisconsin Press, vol. 42(3).
- Thomas J. Kane, 2003. "A Quasi-Experimental Estimate of the Impact of Financial Aid on College-Going," NBER Working Papers 9703, National Bureau of Economic Research, Inc.
- Singell Jr., Larry D., 2002. "Merit, need, and student self selection: is there discretion in the packaging of aid at a large public university?," Economics of Education Review, Elsevier, vol. 21(5), pages 445-454, October.
When requesting a correction, please mention this item's handle: RePEc:eee:ecoedu:v:28:y:2009:i:1:p:99-106. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Zhang, Lei)
If references are entirely missing, you can add them using this form.