State divestment and tuition at public institutions

Douglas Webber

Economics of Education Review, 2017, vol. 60, issue C, 1-4

Abstract: This study examines the pass-through rate of changes in public funding to tuition and fees paid by students. Using an instrumental variable-fixed effects identification strategy, I estimate that a $1000 per student decrease in funding leads to the typical student paying $257 more each year in costs, with. However, both the pass-through rate and the proportion of tuition increases which can be explained by state divestment have increased over time. The pass-through rate increased from 10.3% prior to the year 2000 to 31.8% post-2000. I outline several avenues of future research which should be pursued in order to more fully understand which students shoulder the burden of reductions in public support.

Keywords: State divestment; Tuition; Public higher education (search for similar items in EconPapers)
JEL-codes: I22 I23 I28 (search for similar items in EconPapers)
Date: 2017
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Citations: View citations in EconPapers (21)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:ecoedu:v:60:y:2017:i:c:p:1-4

DOI: 10.1016/j.econedurev.2017.07.007

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