Testing Increasing Sensitivity of Enrollment at Private Institutions to Tuition and Other Costs

This paper re-examines the demand for higher education at private institutions and tests if in recent years enrollment has become more sensitive to rising tuition and other related costs. Time series data between FY 1964-65 and FY 1990-91 are used as the sample. Major findings are interesting. The g...

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Veröffentlicht in:The American Economist (New York, N.Y. 1960) N.Y. 1960), 1996-03, Vol.40 (1), p.40-45
Hauptverfasser: Hsing, Yu, Chang, Hui S.
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Chang, Hui S.
description This paper re-examines the demand for higher education at private institutions and tests if in recent years enrollment has become more sensitive to rising tuition and other related costs. Time series data between FY 1964-65 and FY 1990-91 are used as the sample. Major findings are interesting. The general functional form yields coefficients with smaller standard errors and larger value of the test statistics. The logarithmic form can be rejected at the 5% level. Tuition elasticities rose from -0.261 to -0.557 and income elasticities also increased from 0.493 to 1.093 during the sample period. Thus, enrollment has become more sensitive to changes in tuition and other costs. However, part of the loss of enrollment due to tuition increases can be recovered by rising income elasticities.
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Time series data between FY 1964-65 and FY 1990-91 are used as the sample. Major findings are interesting. The general functional form yields coefficients with smaller standard errors and larger value of the test statistics. The logarithmic form can be rejected at the 5% level. Tuition elasticities rose from -0.261 to -0.557 and income elasticities also increased from 0.493 to 1.093 during the sample period. Thus, enrollment has become more sensitive to changes in tuition and other costs. However, part of the loss of enrollment due to tuition increases can be recovered by rising income elasticities.</abstract><cop>Los Angeles, CA</cop><pub>Omicron Delta Epsilon</pub><doi>10.1177/056943459604000106</doi><tpages>6</tpages></addata></record>
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identifier ISSN: 0569-4345
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source EBSCOhost Business Source Complete; JSTOR Archive Collection A-Z Listing
subjects Analysis
Colleges
Colleges & universities
Costs
Demand
Dependent variables
Economic aspects
Economic conditions
Economic models
Economic theory
Economics
Education
Educational demand
Elasticity (Economics)
Elasticity of demand
Employment
Enrollments
Higher education
Hypotheses
Labor market
Linear regression
Opportunity costs
Population
Private colleges
Private schools
School enrollment
Students
Studies
Supply and demand
Time series
Tuition
Unemployment
Unemployment rates
Universities
Variables
Wage rate
Wage rates
title Testing Increasing Sensitivity of Enrollment at Private Institutions to Tuition and Other Costs
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