Government Policy and Tuition in Higher Education

32 Pages Posted: 7 Jun 2018

See all articles by Angela K. Dills

Angela K. Dills

Western Carolina University

Rey Hernández-Julián

Metropolitan State College of Denver

Nathan Hale

affiliation not provided to SSRN

Date Written: 12/16/2013

Abstract

Tuition and fees for higher education have increased at a rate much higher than inflation over the past 40 years. Although the amount students pay has risen much less than listed tuition, net price also continues to increase faster than inflation. Taxpayer-funded subsidies to higher education have also increased substantially during this period. The Bennett hypothesis states that tuition will increase in response to subsidies. We review the variety of government programs subsidizing higher education and summarize the existing evidence on the Bennett hypothesis. The evidence on the Bennett hypothesis remains mixed, providing some evidence that the effectiveness of the subsidies in increasing college enrollment is diminished to the degree that taxpayer moneys are diverted to the institutions of higher education.

Suggested Citation

Dills, Angela K. and Hernandez-Julian, Rey and Hale, Nathan, Government Policy and Tuition in Higher Education (12/16/2013). MERCATUS RESEARCH, Available at SSRN: https://ssrn.com/abstract=3191274 or http://dx.doi.org/10.2139/ssrn.3191274

Angela K. Dills (Contact Author)

Western Carolina University ( email )

Cullowhee, NC 28723
United States
8282273329 (Phone)

HOME PAGE: http://faculty.wcu.edu/akdills

Rey Hernandez-Julian

Metropolitan State College of Denver ( email )

Student Success Building
890 Auraria Pkwy #310
Denver, CO 80217
United States

Nathan Hale

affiliation not provided to SSRN

No Address Available

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