Colleges inelastic or elastic

Lastly, in Table 5 we present we present our regression results over time to see how the economic recession that the U. Elasticity can be affected by many factors, including the general economic condition, supply and demand, and the school brand and experience.

Explain why controlling for quality is important in order to generate this result.

Colleges inelastic or elastic

This paper represents a unique contribution to the existing literature in that the tuition elasticity of enrollment for two-year public universities is examined. Table 1 presents the previous findings for the tuition elasticity of enrollment at public four-year educational institutions.

Only the percentage of females and the percentage of non-whites are insignificant predictors of enrollment in this specification.

Two measures of enrollment are used as the dependent variable: the month unduplicated headcount of all students enrolled as well as the total number of credit hours. Questions 1. They offer an opportunity to receive a postsecondary education to many students who would not have attended college otherwise.

Next, we compute the share of income by income group. Lastly, the income elasticities of enrollment remain remarkably constant over time at 1. Table 5.

elastic vs inelastic

This makes the endogenous variables pre-determined and, therefore, uncorrelated with the error term in equation 2. An elastic tuition can be adjusted to reflect increased costs without significantly affecting retention. In addition, the individuals at the bottom of the income distribution fund their education primarily through financial aid, so their true educational out-of-pocket expense is much lower than what is estimated by the CEX data.

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The Center for College Affordability and Productivity: The Elasticity of Demand and Student Access