American Economic Journal:
Economic Policy
ISSN 1945-7731 (Print) | ISSN 1945-774X (Online)
The Out-of-State Tuition Distortion
American Economic Journal: Economic Policy
vol. 11,
no. 1, February 2019
(pp. 317–50)
(Complimentary)
Abstract
Public universities typically charge much higher tuition to nonresidents. We first investigate the welfare implications of this tuition gap in a simple model. While the social planner does not distinguish between residents and nonresidents, state governments set higher tuition for nonresidents. The welfare gains from reducing the tuition gap can be characterized by a sufficient statistic relating out-of-state enrollment to the tuition gap. We estimate this sufficient statistic via a border discontinuity design using data on the geographic distribution of students by institution.Citation
Knight, Brian, and Nathan Schiff. 2019. "The Out-of-State Tuition Distortion." American Economic Journal: Economic Policy, 11 (1): 317–50. DOI: 10.1257/pol.20170499Additional Materials
JEL Classification
- H75 State and Local Government: Health; Education; Welfare; Public Pensions
- I22 Educational Finance; Financial Aid
- I23 Higher Education; Research Institutions
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