Resident and Nonresident Tuition and Enrollment at Flagship State Universities

Abstract

We address the determinants of resident and nonresident tuition and enrollment at public universities.A key explanatory variable is the share of out-of-state students enrolled under reciprocity agreements.We find that public universities use out-of-state enrollments primarily to augment student quality, not to make up for losses in state appropriations.In the main out-of-state enrollment levels are relatively insensitive to out-of-state tuition levels charged by institutions.Finally, we find no evidence that public universities increase their in-state or out-of-state tuition levels in response to increased federal or state financial aid for students.

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