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The Sensitivity of Capital Use to Price in Higher Education

Author

Listed:
  • Malcolm Getz

    (Deparment of Economics, Vanderbilt Unversity)

  • John J. Siegfried

    (Department of Economics, Vanderbilt University)

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. At public universities comprehensive universities the evidence suggests that students enjoy more space where building costs are lower. We are unable to explain a relationship for two-year colleges.

Suggested Citation

  • Malcolm Getz & John J. Siegfried, 2004. "The Sensitivity of Capital Use to Price in Higher Education," Vanderbilt University Department of Economics Working Papers 0405, Vanderbilt University Department of Economics.
  • Handle: RePEc:van:wpaper:0405
    as

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    References listed on IDEAS

    as
    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:

    1. 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.
    2. Eiji Yamamura, 2015. "Is university sports an advertisement in the higher education market? An analysis of the Hakone long-distance relay road race in Japan," ISER Discussion Paper 0922, Institute of Social and Economic Research, Osaka University.

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    More about this item

    Keywords

    factor price effects on college input ratios;

    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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