Is College Pricing Power Pro-Cyclical?

Autor/inn/en	Altringer, Levi; Summers, Jeffrey
Titel	Is College Pricing Power Pro-Cyclical?
Quelle	In: Research in Higher Education, 56 (2015) 8, S.777-792 (16 Seiten)Infoseite zur Zeitschrift PDF als Volltext Verfügbarkeit
Sprache	englisch
Dokumenttyp	gedruckt; online; Zeitschriftenaufsatz
ISSN	0361-0365
DOI	10.1007/s11162-015-9373-z
Schlagwörter	Private Colleges; Tuition; Educational Finance; Economic Climate; Income; Data Analysis + Suchen Sie Ihr Suchwort? Privathochschule; Unterweisung; Unterricht; Bildungsfonds; Wirtschaftslage; Einkommen; Auswertung
Abstract	We define pricing power as a college's ability to increase its net tuition revenue by raising its sticker-price for tuition. The greater is the positive effect of sticker-price increases on net tuition revenue, the greater is the pricing power. We gauge variation in the pricing power of private, non-profit baccalaureate colleges by estimating this effect over the academic years 2000-2001 through 2012-2013--a span which includes two recessions. Drawing on IPEDS data for 118 colleges, our empirical results reveal that the additional real net tuition revenue earned per dollar increase in the real sticker-price fell by 5% following the 2001-2002 recession, but had fully recovered to its pre-recession level by 2004-2005. In contrast, since the end of the Great Recession of 2007-2009 the real return to sticker-price increases has fallen by 12% with no recovery in sight by the end of our sample period. So while private colleges' pricing power was pro-cyclical during the sample period's first recession, the later, more severe Great Recession has produced a larger, longer lasting negative effect on pricing power. We consider the implications for private colleges of this lost pricing power. (As Provided).
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Erfasst von	ERIC (Education Resources Information Center), Washington, DC
Update	2020/1/01