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Determinants of Tuition Fees in Private Universities in Mexico 2005-2019

Flores Segovia Miguel A., Salcedo Alejandrina and Torre Cepeda Leonardo E.

No 2022-08, Working Papers from Banco de México

Abstract: We estimate a supply and demand model of private college education services in Mexico for the 2005-2019 period, in order to identify the factors that influenced the dynamics of their equilibrium prices. The model is estimated with two- and three-stage least squares using panel data at the state level. The estimates suggest that while the contribution of demand variables to the inflation of such prices has been positive and fairly stable, that of supply variables, even though it has been more fluctuating, it has also been larger than the contribution of the former throughout the entire period. The estimated model is used, in turn, to identify the supply and demand variables that most contributed to the recent acceleration (2016-2018) and subsequent deceleration (2018-2019) of the observed inflation in private college education prices.

Keywords: TuitionFees; SimultaneousEquations; PanelData; RegionalAnalysis; Mexico (search for similar items in EconPapers)
JEL-codes: C20 C23 D12 O54 R10 (search for similar items in EconPapers)
Date: 2022-10
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