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Determinants of Tuition Fees in Private Universities in Mexico 2005-2019

Author

Listed:
  • Flores Segovia Miguel A.
  • Salcedo Alejandrina
  • Torre Cepeda Leonardo E.

Abstract

We estimate a supply and demand model of private college education services in Mexico for the 2005-2019 period, in order to identify the factors that influenced the dynamics of their equilibrium prices. The model is estimated with two- and three-stage least squares using panel data at the state level. The estimates suggest that while the contribution of demand variables to the inflation of such prices has been positive and fairly stable, that of supply variables, even though it has been more fluctuating, it has also been larger than the contribution of the former throughout the entire period. The estimated model is used, in turn, to identify the supply and demand variables that most contributed to the recent acceleration (2016-2018) and subsequent deceleration (2018-2019) of the observed inflation in private college education prices.

Suggested Citation

  • Flores Segovia Miguel A. & Salcedo Alejandrina & Torre Cepeda Leonardo E., 2022. "Determinants of Tuition Fees in Private Universities in Mexico 2005-2019," Working Papers 2022-08, Banco de México.
    • Handle: RePEc:bdm:wpaper:2022-08
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    File URL: https://www.banxico.org.mx/publicaciones-y-prensa/documentos-de-investigacion-del-banco-de-mexico/%7B96B76A43-C07E-7043-D275-3CD09DCD7D46%7D.pdf
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    More about this item

    Keywords

    TuitionFees; SimultaneousEquations; PanelData; RegionalAnalysis; Mexico;
    All these keywords.

    JEL classification:

    • D12 - Microeconomics - - Household Behavior - - - Consumer Economics: Empirical Analysis
    • C20 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - General
    • C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models
    • R10 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - General
    • O54 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Latin America; Caribbean

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