Economics at your fingertips  

Accounting for Tuition Increases at U.S. Colleges

Aaron Hedlund and Grey Gordon
Additional contact information
Aaron Hedlund: University of Missouri

No 1550, 2017 Meeting Papers from Society for Economic Dynamics

Abstract: We develop a quantitative model of higher education to test explanations for the steep rise in college tuition between 1987 and 2010. The framework extends the paradigm in Epple, Romano, Sarpca, and Sieg (2013) of imperfectly competitive, quality-maximizing colleges and embeds it in an incomplete markets, life-cycle environment. We measure how much changes in college costs, reforms to the Federal Student Loan Program (FSLP), and the returns to college have contributed to tuition inflation. Taken together, the changes can fully explain the tuition increases seen at U.S. colleges. Our findings suggest that the FSLP and college costs are the main drivers of college tuition.

New Economics Papers: this item is included in nep-dge and nep-edu
Date: 2017
References: View references in EconPapers View complete reference list from CitEc
Citations Track citations by RSS feed

Downloads: (external link) (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link:

Access Statistics for this paper

More papers in 2017 Meeting Papers from Society for Economic Dynamics Society for Economic Dynamics Marina Azzimonti Department of Economics Stonybrook University 10 Nicolls Road Stonybrook NY 11790 USA. Contact information at EDIRC.
Bibliographic data for series maintained by Christian Zimmermann ().

Page updated 2019-01-12
Handle: RePEc:red:sed017:1550