Saturday, September 9, 2017

Colleges get more students to attend from this — than cutting tuition - Jillian Berman, Marketwatch

The simple rule of supply and demand suggests that lowering the price of a product will convince more people to buy it. But a new study suggests that the concept doesn’t apply quite as neatly when it comes to college degrees. The research, distributed by the National Bureau of Economic Research this week, found that a college increasing spending per student actually does more to push students to enroll and complete their degrees than decreasing their tuition does. The question motivating the study, which looked at data on U.S. public colleges from between 1990 and 2013, is whether it makes more sense for a public school that receives an increase in state funding to pass that boost onto students in the form of a tuition cut or a spending increase. http://www.marketwatch.com/story/colleges-get-more-students-to-attend-from-this-than-cutting-tuition-2017-08-31

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