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The Sensitivity of Capital Use to Price in Higher Education

Author

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  • Malcolm Getz

    (Department of Economics, Vanderbilt University, Nashville, TN 37235-1819, USA; Tel.: +1-615-322-3425; Fax: 1-615-343-8495)

  • John J. Siegfried

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 but do reflect differences in institutional wealth. At public comprehensive universities and two-year colleges the evidence suggests that students enjoy more space per student where building costs are lower.

Suggested Citation

  • Malcolm Getz & John J. Siegfried, 2004. "The Sensitivity of Capital Use to Price in Higher Education," Review of Industrial Organization, Springer;The Industrial Organization Society, vol. 24(4), pages 379-391, June.
    • Handle: RePEc:kap:revind:v:24:y:2004:i:4:p:379-391
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    References listed on IDEAS

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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.
    2. Clotfelter, Charles T. & Ehrenberg, Ronald G. & Getz, Malcolm & Siegfried, John J., 1992. "Economic Challenges in Higher Education," National Bureau of Economic Research Books, University of Chicago Press, edition 1, number 9780226110509, December.
    3. Charles T. Clotfelter & Ronald G. Ehrenberg & Malcolm Getz & John J. Siegfried, 1991. "Introduction to "Economic Challenges in Higher Education"," NBER Chapters, in: Economic Challenges in Higher Education, pages 1-16, National Bureau of Economic Research, Inc.
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    Cited by:

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    2. Tsu‐Tan Fu & Cliff J. Huang & Flora F. Tien, 2008. "University Cost Structure In Taiwan," Contemporary Economic Policy, Western Economic Association International, vol. 26(4), pages 651-662, October.

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    More about this item

    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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