lynx   »   [go: up one dir, main page]
IDEAS home Printed from https://ideas.repec.org/a/eee/jpolmo/v43y2021i3p543-557.html
   My bibliography  Save this article

Efficient enrollments using high tuition-high aid

Author

Listed:
  • Fethke, Gary
Abstract
The goal of high tuition-high aid is to charge high-pay residents the nonresident tuition net of the state subsidy to support low-income residents. This approach often ignores differences in program costs and presumes the state appropriation will not react. Here tuition and subsidy structures are developed as rules in a welfare-maximization framework. Once fixed costs are accommodated, low-pay resident enrollments can be admitted at marginal cost, thereby achieving efficient enrollments. The models are applied to Penn State University, where it is shown that high tuition-high aid can approximate actual tuition policy, accommodate enrollments of low-income students, and increase total welfare.

Suggested Citation

  • Fethke, Gary, 2021. "Efficient enrollments using high tuition-high aid," Journal of Policy Modeling, Elsevier, vol. 43(3), pages 543-557.
    • Handle: RePEc:eee:jpolmo:v:43:y:2021:i:3:p:543-557
    DOI: 10.1016/j.jpolmod.2021.03.003
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S016189382100020X
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.jpolmod.2021.03.003?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to

    for a different version of it.

    References listed on IDEAS

    as
    1. John Bound & Breno Braga & Gaurav Khanna & Sarah Turner, 2020. "A Passage to America: University Funding and International Students," American Economic Journal: Economic Policy, American Economic Association, vol. 12(1), pages 97-126, February.
    2. Joseph G. Altonji & Seth D. Zimmerman, 2018. "The Costs of and Net Returns to College Major," NBER Chapters, in: Productivity in Higher Education, pages 133-176, National Bureau of Economic Research, Inc.
    3. Coda Moscarola, Flavia & Colombino, Ugo & Figari, Francesco & Locatelli, Marilena, 2020. "Shifting taxes away from labour enhances equity and fiscal efficiency," Journal of Policy Modeling, Elsevier, vol. 42(2), pages 367-384.
    4. Ingo Vogelsang & Jorg Finsinger, 1979. "A Regulatory Adjustment Process for Optimal Pricing by Multiproduct Monopoly Firms," Bell Journal of Economics, The RAND Corporation, vol. 10(1), pages 157-171, Spring.
    5. Burer, Samuel & Fethke, Gary, 2016. "Nearly-efficient tuitions and subsidies in American public higher education," Economics of Education Review, Elsevier, vol. 55(C), pages 182-197.
    6. Gary Fethke, 2017. "Efficiency And Equity Implications Of Charging Nonresidents Full-Cost Tuitions," Contemporary Economic Policy, Western Economic Association International, vol. 35(4), pages 603-614, October.
    7. Fethke, Gary, 2011. "A low-subsidy problem in public higher education," Economics of Education Review, Elsevier, vol. 30(4), pages 617-626, August.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Burer, Samuel & Fethke, Gary, 2016. "Nearly-efficient tuitions and subsidies in American public higher education," Economics of Education Review, Elsevier, vol. 55(C), pages 182-197.
    2. Riechmann, Christoph, 2000. "Strategic pricing of grid access under partial price-caps -- electricity distribution in England and Wales," Energy Economics, Elsevier, vol. 22(2), pages 187-207, April.
    3. Yuheng Lin & Dooruj Rambaccussing & Yu Zhu, 2024. "The impact of international students in the UK on the cultural goods trade," French Stata Users' Group Meetings 2024 29, Stata Users Group.
    4. Wenming Shi & Meifeng Luo & Mengjie Jin & Seu Keow Cheng & Kevin X. Li, 2020. "Urban–rural income disparity and inbound tourism: Spatial evidence from China," Tourism Economics, , vol. 26(7), pages 1231-1247, November.
    5. Thijs ten Raa, 2009. "Monopoly, Pareto and Ramsey Mark-ups," Journal of Industry, Competition and Trade, Springer, vol. 9(1), pages 57-63, March.
    6. Waters, II, W.G. & Tretheway, Michael W., 2000. "Labor Payouts, Productivity Measurement and the Price Cap Approach to Regulation," Journal of the Transportation Research Forum, Transportation Research Forum, vol. 39(01).
    7. Benford, Frank A., 1998. "On the Dynamics of the Regulation of Pollution: Incentive Compatible Regulation of a Persistent Pollutant," Journal of Environmental Economics and Management, Elsevier, vol. 36(1), pages 1-25, July.
    8. David M. N. Mahon & Carlos J. Asarta, 2024. "Why are Schools Reclassifying Their Economics Major?," Eastern Economic Journal, Palgrave Macmillan;Eastern Economic Association, vol. 50(1), pages 103-116, January.
    9. Philip Oreopoulos, 2021. "What Limits College Success? A Review and Further Analysis of Holzer and Baum's Making College Work," Journal of Economic Literature, American Economic Association, vol. 59(2), pages 546-573, June.
    10. Niklas Engbom & Christian Moser, 2017. "Returns to Education through Access to Higher-Paying Firms: Evidence from US Matched Employer-Employee Data," American Economic Review, American Economic Association, vol. 107(5), pages 374-378, May.
    11. Georg Meran & Christian Hirschhausen, 2009. "A modified yardstick competition mechanism," Journal of Regulatory Economics, Springer, vol. 35(3), pages 223-245, June.
    12. Sherman, Roger, 1989. "Institutional design for monopoly regulation," European Journal of Political Economy, Elsevier, vol. 5(2-3), pages 245-257.
    13. Makoto TANAKA, 2005. "Optimal Transmission Capacity under Nodal Pricing and Incentive Regulation for Transco," Discussion papers 05021, Research Institute of Economy, Trade and Industry (RIETI).
    14. Daniel Duma & Michael G. Pollitt & Andrei Covatariu, 2024. "Regulatory Learning in the Face of Net Zero Climate Policy: The Case of the UK," Review of Industrial Organization, Springer;The Industrial Organization Society, vol. 65(2), pages 505-530, September.
    15. Cook, Emily E. & Turner, Sarah, 2022. "Progressivity of pricing at US public universities," Economics of Education Review, Elsevier, vol. 88(C).
    16. William P. Rogerson, 1993. "Inter-temporal Cost Allocation and Managerial Investment Incentives," Discussion Papers 1060, Northwestern University, Center for Mathematical Studies in Economics and Management Science.
    17. John Bound & Breno Braga & Gaurav Khanna & Sarah Turner, 2019. "Public Universities: The Supply Side of Building a Skilled Workforce," NBER Working Papers 25945, National Bureau of Economic Research, Inc.
    18. Varawala, Lamia & Hesamzadeh, Mohammad Reza & Dán, György & Bunn, Derek & Rosellón, Juan, 2023. "A pricing mechanism to jointly mitigate market power and environmental externalities in electricity markets," Energy Economics, Elsevier, vol. 121(C).
    19. Sengupta, Abhijit & Tauman, Yair, 2011. "Inducing efficiency in oligopolistic markets with increasing returns to scale," Mathematical Social Sciences, Elsevier, vol. 62(2), pages 95-100, September.
    20. Helmuth Cremer & Firouz Gahvari, 2017. "Restoring Ramsey tax lessons to Mirrleesian tax settings: Atkinson–Stiglitz and Ramsey reconciled," Social Choice and Welfare, Springer;The Society for Social Choice and Welfare, vol. 49(1), pages 11-35, June.

    More about this item

    Keywords

    ;
    ;
    ;
    ;

    JEL classification:

    • D42 - Microeconomics - - Market Structure, Pricing, and Design - - - Monopoly
    • D61 - Microeconomics - - Welfare Economics - - - Allocative Efficiency; Cost-Benefit Analysis
    • I22 - Health, Education, and Welfare - - Education - - - Educational Finance; Financial Aid
    • I28 - Health, Education, and Welfare - - Education - - - Government Policy

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:jpolmo:v:43:y:2021:i:3:p:543-557. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/inca/505735 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.
    Лучший частный хостинг