Competing Campuses: Equilibrium Prices, Admissions, and Undergraduate Programs in US Higher Education

Emily Cook ()

No 2120, Working Papers from Tulane University, Department of Economics

Abstract: I build and estimate an equilibrium model of US undergraduate education in which universities compete by choosing prices, admission standards, and major programs to offer. Estimates suggest that students are willing to pay $50 per year for an additional program, and $118 for a percentage point increase in the share of programs offered in STEM. A counterfactual $1,000 scholarship for Wisconsin students to attend in-state public universities generates a $400 average in-state tuition increase and a 1.75% increase in enrollment. A $100 per-student subsidy to universities for each STEM program increases STEM pro- grams offered by 27% and enrollment by 1.5%.

Keywords: College choice; College admission; College majors; Financial aid; STEM; Mixed oligopoly; Non-profit firms; Demand estimation (search for similar items in EconPapers)
JEL-codes: I23 I28 L13 L31 (search for similar items in EconPapers)
Date: 2021-12
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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