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Public No MoreA New Path to Excellence for America's Public Universities$
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Andrew J. Policano and Gary C. Fethke

Print publication date: 2012

Print ISBN-13: 9780804780506

Published to Stanford Scholarship Online: June 2013

DOI: 10.11126/stanford/9780804780506.001.0001

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Tuition Setting in Practice

Tuition Setting in Practice

Chapter:
(p.49) 4 Tuition Setting in Practice
Source:
Public No More
Publisher:
Stanford University Press
DOI:10.11126/stanford/9780804780506.003.0004

This chapter analyzes tuition fee settings in public universities in the U.S. It analyzes tuition fee responses needed to offset the decline in state subsidies and discusses the factors that are needed to be c onsidered in determining tuition fees. The analysis indicates that large percentage increases in tuition fees are necessary to maintain current university budgets in response to decreases in the public subsidy and that gifts and entrepreneurial programs are unlikely to generate sufficient revenue to fill the void created by the loss of subsidies. This chapter explains the role of tuition elasticity in determining the percentage increase in tuition necessary to offset subsidy reductions.

Keywords:   tuition fee, public universities, U.S., state subsidies, university budgets, public subsidy, entrepreneurial programs, tuition elasticity

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