IMPACT OF TUITION INCREASES

The Impact of Tuition Increases on Enrollment at Public Colleges and Universities in the US between 2008 and 2011 in the south of the US in the south of the US

Abstract

This research paper focuses on the impact of tuition increases on enrollment at public colleges and universities in the US between 2008 and 2011 in the south of the US. With reference to the topic, the paper examines the impact on enrollment of rising tuition at public colleges and universities. The hypothesis of the study is that there is a significant impact of tuition increases on enrollment at public colleges and universities in the US between 2008 and 2011 in the south of the US which is important to study. For that reason, the results of the study revealed that there is impact of tuition increases on enrollment at public colleges and universities in the US between 2008 and 2011 in the south of the US. Moreover, it can be said that although the patterns of intertemporal tuition changes across public 4 year institutions within states along with the inverse relationship between tuition increases and state appropriation levels provide confidence that the tuition increases observed during the course of this panel can be taken as exogenous at the institution level, other concerns related to interpreting the enrollment-tuition relationships estimated here as evidence of demand elasticity may remain.

Introduction

The study is related to the impact of tuition increases on enrollment at public colleges and universities in the US between 2008 and 2011 in the south of the US. In this paper, the study examines the impact on enrollment of rising tuition at public colleges and universities. The study first objective is to update estimates of the price sensitivity of enrollment in public education. Much of what the study know about enrollment response to tuition increases comes from data collected from 2008 to 2011, an era predating the recent run-up in tuition and fees.

The data the study use constitute an institution-level panel and permit us to measure enrollment, tuition and fees, and student aid for all public 4 year colleges and universities. In addition, the study can measure the size of the cohort of high school graduates within a state and the tuition and fees charged at all other 2 and 4 year colleges within the state. The identifying assumptions for the study models are that tuition increases are largely exogenous (at least at the institution level) and that schools have limited power to affect enrollment by modifying admissions decisions when adopting tuition increases. As the study discuss in this article, both of these assumptions appear to hold. For example, a large portion of the within-state variation in tuition and fees is common across institutions, and the study finds no evidence that an institution's admissions decisions are related to tuition and fee changes. In the summer of 2009, with its budget a shambles, the state of California cut support for the University of California system by 20%, or over $800 ...