EFFICIENCY AND EQUITY IMPLICATIONS OF CHARGING NONRESIDENTS FULL-COST TUITIONS.

With fixed costs and a break-even constraint describing a public university, tuition and subsidy structures are endogenously determined that maximize constrained welfare, defined as students' value (net consumers' surplus) minus the taxpayer appropriation. Requiring nonresidents to pay full-cost tui...

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Publicado en:Contemporary Economic Policy Vol. 35; no. 4; pp. 603 - 615
Autor principal: Fethke, Gary
Formato: Artículo
Publicado: Wiley-Blackwell Oct2017
Materias:
Acceso en línea:Ver este registro en EBSCOhost
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        atl: EFFICIENCY AND EQUITY IMPLICATIONS OF CHARGING NONRESIDENTS FULL-COST TUITIONS.
      aug:
        au: Fethke, Gary
        affil: Professor Emeritus, Management Sciences and Economics, Tippie College of Business, University of Iowa, Iowa City IA 52242
      su:
        University of Iowa
        Iowa State University
        Tuition
        Equity (Law)
        Public universities & colleges
      sug:
        subj:
          Tuition
          Equity (Law)
          University of Iowa
          Iowa State University
          Public universities & colleges
      ab: With fixed costs and a break-even constraint describing a public university, tuition and subsidy structures are endogenously determined that maximize constrained welfare, defined as students' value (net consumers' surplus) minus the taxpayer appropriation. Requiring nonresidents to pay full-cost tuitions introduces relative deviations in demand that lead to efficiency losses and income transfers. To measure these effects, demand and cost expressions are developed to replicate standard decentralized budgeting frameworks for the University of Iowa and Iowa State University. Efficiency losses associated with requiring nonresidents to pay fully allocated costs are modest (2%-6%) compared to orders of magnitude larger distributional transfers from nonresidents to residents and taxpayers. ( JEL I22, I28)
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    language: English
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