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Tuition Increases and University Behavior: Theory and Evidence on Student Enrollment

Author

Listed:
  • Katherine Cuff
  • Ana Gamarra Rondinel
  • A. Abigail Payne

Abstract

This paper considers the role universities play in determining their enrollment when faced with government regulated domestic tuition. Our theoretical framework posits that domestic student enrollment increase and international student enrollment decrease or remain unchanged when domestic tuition increases. Using 30 years of data, we find higher tuition increases domestic enrollment, mediated by an expectation that students may respond negatively to increased tuition. Universities shift enrollment toward higher-revenue fields. The results for international student enrollment is mixed, depending on the research intensity of the university.

Suggested Citation

  • Katherine Cuff & Ana Gamarra Rondinel & A. Abigail Payne, 2025. "Tuition Increases and University Behavior: Theory and Evidence on Student Enrollment," CESifo Working Paper Series 12018, CESifo.
    • Handle: RePEc:ces:ceswps:_12018
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    File URL: https://www.ifo.de/DocDL/cesifo1_wp12018.pdf
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    JEL classification:

    • I23 - Health, Education, and Welfare - - Education - - - Higher Education; Research Institutions
    • I28 - Health, Education, and Welfare - - Education - - - Government Policy
    • I22 - Health, Education, and Welfare - - Education - - - Educational Finance; Financial Aid

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