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Tuition fees and the demand for university places

  • Neill, Christine

Estimating the effect of tuition fee increases on demand for a university education is complicated by the potential endogeneity of tuition fees. The relative homogeneity of university tuition fees within Canadian provinces and the role of provincial governments in university funding and policies, provides an opportunity to use changes in the political party in power to identify plausibly exogenous changes in tuition fees. System estimates that take into account endogeneity of fees show large effects relative to single equation estimates, and to previous Canadian studies - a C$1000 increase in university tuition fees is estimated to reduce the enrolment rate by between 2.5 and 5 percentage points.

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File URL: http://www.sciencedirect.com/science/article/B6VB9-4VWB1CY-2/2/233452d9d567b4ef74ae3379d8f87e11
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Article provided by Elsevier in its journal Economics of Education Review.

Volume (Year): 28 (2009)
Issue (Month): 5 (October)
Pages: 561-570

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Handle: RePEc:eee:ecoedu:v:28:y:2009:i:5:p:561-570
Contact details of provider: Web page: http://www.elsevier.com/locate/econedurev

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  8. Dynarski, Susan, 2000. "Hope for Whom? Financial Aid for the Middle Class and Its Impact on College Attendance," National Tax Journal, National Tax Association, vol. 53(n. 3), pages 629-62, September.
  9. 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.
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