Testing sensitivity of student enrollment with respect to tuition at an institution of higher education

This study was conducted to measure the impact of H-University's (HU's) tuition increases on enrollment. Based on an internal survey, this study attempts to explain the sensitivity of student enrollment to tuition variations. In addition, this paper develops an aggregate enrollment model a...

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Bibliographic Details
Published in:International advances in economic research 2004-05, Vol.10 (2), p.133-149
Main Authors: Vasigh, Bijan, Hamzaee, Reza G
Format: Article
Language:English
Subjects:
Enrollments
Finance
Higher education
Studies
Tuition
United States
Universities and colleges
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Summary:This study was conducted to measure the impact of H-University's (HU's) tuition increases on enrollment. Based on an internal survey, this study attempts to explain the sensitivity of student enrollment to tuition variations. In addition, this paper develops an aggregate enrollment model and uses the common economic variables such as tuition, income, wage rates, financial aids, and unemployment rates to explain the sensitivity of demand. The most significant finding of this study is that tuition consideration seems to have a relatively small effect on students' decisions. Actually, enrollment at HU (a private institution) have increased despite higher tuition rate. Possible justifications could be proposed, such as the necessity of higher education and the fact that higher education is a continued investment in human capital, in which the more relevant decision factor is the corresponding expected rate of return and not just the cost of investment.[Publication Abstract]
ISSN:1083-0898
1573-966X
DOI:10.1007/BF02295676