Pricing and university autonomy: Tuition deregulation in Texas

Jeongeun Kim, Kevin Stange

Research output: Contribution to journalArticle

9 Citations (Scopus)

Abstract

This paper investigates changes in tuition policies in the wake of tuition deregulation in Texas, which in 2003 transferred tuition-setting authority from the state legislature to institutions. We find that price increases accelerated, particularly at the most selective institutions. Institutions also began differentiating price by undergraduate program, raising relative prices for the most costly and lucrative majors, including engineering, business, nursing, and architecture. Price increases were particularly large for institutions with the highest initial costs and for programs with a high earnings premium within institutions, though lower for institutions with more low-income students. These distinctions suggest that public postsecondary institutions respond to microeconomic incentives when given greater autonomy to set price, and take some measures to alleviate impacts on low-income students. The Texas experience suggests that decentralized price-setting generates greater price differentiation within the public higher education system, both across and within institutions.

Original languageEnglish (US)
Pages (from-to)112-146
Number of pages35
JournalRSF
Volume2
Issue number1
DOIs
StatePublished - Apr 1 2016

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deregulation
pricing
autonomy
university
price differentiation
low income
microeconomics
public institution
premium
education system
nursing
student
incentive
engineering
costs
experience

Keywords

  • College pricing
  • Deregulation
  • Differential tuition
  • Tuition

ASJC Scopus subject areas

  • Social Sciences (miscellaneous)

Cite this

Pricing and university autonomy : Tuition deregulation in Texas. / Kim, Jeongeun; Stange, Kevin.

In: RSF, Vol. 2, No. 1, 01.04.2016, p. 112-146.

Research output: Contribution to journalArticle

Kim, Jeongeun ; Stange, Kevin. / Pricing and university autonomy : Tuition deregulation in Texas. In: RSF. 2016 ; Vol. 2, No. 1. pp. 112-146.
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