The Out-of-State Tuition Distortion

Brian Knight and Nathan Schiff

American Economic Journal: Economic Policy, 2019, vol. 11, issue 1, 317-50

Abstract: Public universities typically charge much higher tuition to nonresidents. We first investigate the welfare implications of this tuition gap in a simple model. While the social planner does not distinguish between residents and nonresidents, state governments set higher tuition for nonresidents. The welfare gains from reducing the tuition gap can be characterized by a sufficient statistic relating out-of-state enrollment to the tuition gap. We estimate this sufficient statistic via a border discontinuity design using data on the geographic distribution of students by institution.

JEL-codes: H75 I22 I23 (search for similar items in EconPapers)
Date: 2019
Note: DOI: 10.1257/pol.20170499
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Citations: View citations in EconPapers (4)

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Working Paper: The Out-of-State Tuition Distortion (2016)
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