Tuition Increases and University Behavior: Theory and Evidence on Student Enrollment

Katherine Cuff, Ana Gamarra Rondinel () and A. Abigail Payne ()
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Ana Gamarra Rondinel: Melbourne Institute of Applied Economic and Social Research, The University of Melbourne, https://findanexpert.unimelb.edu.au/profile/870323-ana-gamarra-rondinel
A. Abigail Payne: Melbourne Institute of Applied Economic and Social Research, The University of Melbourne, https://findanexpert.unimelb.edu.au/profile/140028-abigail-payne

Melbourne Institute Working Paper Series from Melbourne Institute of Applied Economic and Social Research, The University of Melbourne

Abstract: This paper considers the role universities play in determining their enrollment when faced with government regulated domestic tuition. Our theoretical framework posits that domestic student enrollment increase and international student enrollment decrease or remain unchanged when domestic tuition increases. Using 30 years of data, we find higher tuition increases domestic enrollment, mediated by an expectation that students may respond negatively to increased tuition. Universities shift enrollment toward higher-revenue fields. The results for international student enrollment is mixed, depending on the research intensity of the university.

Keywords: post-secondary education; university enrollment; tuition; government funding; university regulation (search for similar items in EconPapers)
JEL-codes: I22 I23 I28 (search for similar items in EconPapers)
Pages: 69pp
Date: 2025-08
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https://melbourneinstitute.unimelb.edu.au/__data/a ... 351390/wp2025no6.pdf (application/pdf)

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Working Paper: Tuition Increases and University Behavior: Theory and Evidence on Student Enrollment (2025)
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Persistent link: https://EconPapers.repec.org/RePEc:iae:iaewps:wp2025n06

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