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Resident and Nonresident Tuition and Enrollment at Flagship State Universities

In: College Choices: The Economics of Where to Go, When to Go, and How to Pay For It

  • Michael Rizzo
  • Ronald G. Ehrenberg

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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This chapter was published in:
  • Caroline M. Hoxby, 2004. "College Choices: The Economics of Where to Go, When to Go, and How to Pay For It," NBER Books, National Bureau of Economic Research, Inc, number hoxb04-1, December.
  • This item is provided by National Bureau of Economic Research, Inc in its series NBER Chapters with number 10103.
    Handle: RePEc:nbr:nberch:10103
    Contact details of provider: Postal: National Bureau of Economic Research, 1050 Massachusetts Avenue Cambridge, MA 02138, U.S.A.
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    1. 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.
    2. Siow, Aloysius, 1997. "Some evidence on the signalling role of research in academia," Economics Letters, Elsevier, vol. 54(3), pages 271-276, July.
    3. Balderston, Frederick, 1997. "Tuition and financial aid in higher education: The case of California," Economics of Education Review, Elsevier, vol. 16(3), pages 337-343, June.
    4. 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.
    5. Gordon C. Winston, 1999. "Subsidies, Hierarchy and Peers: The Awkward Economics of Higher Education," Journal of Economic Perspectives, American Economic Association, vol. 13(1), pages 13-36, Winter.
    6. Dynarski, Susan, 2002. "The Consequences of Merit Aid," Working Paper Series rwp02-051, Harvard University, John F. Kennedy School of Government.
    7. 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.
    8. Charles T. Clotfelter & Ronald G. Ehrenberg & Malcolm Getz & John J. Siegfried, 1991. "Economic Challenges in Higher Education," NBER Books, National Bureau of Economic Research, Inc, number clot91-1, December.
    9. Ronald G. Ehrenberg & Daniel R. Sherman, 1984. "Optimal Financial Aid Policies for a Selective University," Journal of Human Resources, University of Wisconsin Press, vol. 19(2), pages 202-230.
    10. 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..
    11. Rajindar Koshal & Manjulika Koshal, 2000. "State Appropriation and Higher Education Tuition: What is the relationship?," Education Economics, Taylor & Francis Journals, vol. 8(1), pages 81-89.
    12. 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.
    13. 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.
    14. 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.
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