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The Impact of Tuition Increases on Enrollment in the State of Alabama Public Colleges and Universities

Author

Listed:
  • Mariano Runco

    (Auburn University at Montgomery)

  • James Francisco

    (Auburn University at Montgomery)

  • Jeff Bates

    (Auburn University at Montgomery)

Abstract

In this paper we estimate the impact of the steep increases in tuition since 2002 on enrollment in public universities in the state of Alabama. We are interested in determining if enrollment in regional universities, which serve a more diverse and non-traditional set of students, is more sensitive to prices than enrollment in more traditional institutions. We estimate different models that control for several relevant variables and find that the elasticity of demand is approximately -0.44 if the University of Alabama and Auburn University are included in the sample while the elasticity is -0.55 if those two institutions are not included.

Suggested Citation

  • Mariano Runco & James Francisco & Jeff Bates, 2019. "The Impact of Tuition Increases on Enrollment in the State of Alabama Public Colleges and Universities," Economics Bulletin, AccessEcon, vol. 39(4), pages 2697-2705.
    • Handle: RePEc:ebl:ecbull:eb-19-00011
    as

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    References listed on IDEAS

    as
    1. Donald E. Heller, 1997. "Student Price Response in Higher Education," The Journal of Higher Education, Taylor & Francis Journals, vol. 68(6), pages 624-659, November.
    2. Dumitrescu, Elena-Ivona & Hurlin, Christophe, 2012. "Testing for Granger non-causality in heterogeneous panels," Economic Modelling, Elsevier, vol. 29(4), pages 1450-1460.
    3. Jeffrey T. Denning, 2017. "College on the Cheap: Consequences of Community College Tuition Reductions," American Economic Journal: Economic Policy, American Economic Association, vol. 9(2), pages 155-188, May.
    4. Parker, Jeffrey & Summers, Jeffrey, 1993. "Tuition and enrollment yield at selective liberal arts colleges," Economics of Education Review, Elsevier, vol. 12(4), pages 311-324, December.
    5. Buss, Christian & Parker, Jeffrey & Rivenburg, Jon, 2004. "Cost, quality and enrollment demand at liberal arts colleges," Economics of Education Review, Elsevier, vol. 23(1), pages 57-65, February.
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    Cited by:

    1. James Dean Ward & Daniel Corral, 2023. "Resetting Prices: Estimating the Effect of Tuition Reset Policies on Institutional Finances and Enrollment," Research in Higher Education, Springer;Association for Institutional Research, vol. 64(6), pages 862-892, September.

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    More about this item

    Keywords

    public universities; Alabama; tuition; enrollment; elasticity of demand; estimation.;
    All these keywords.

    JEL classification:

    • I2 - Health, Education, and Welfare - - Education

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