Price, G., & Sheftall, W. (2015). The price elasticity of freshman enrollment demand at a historically black college for males: Implications for the design of tuition and financial aid pricing schemes that maximize black male college access. The Journal of Negro Education,84(4), 578-592.
This article explores how responsive freshman enrollment demand is to changes in the price of enrollment at a selective private all-male historically Black college. With post-admission administrative data on newly admitted freshmen for the 2009-2010 academic year, the authors use a count data estimator to calculate the responsiveness of course hours taken to changes in tuition and household income at the intensive margin. The results reveal that student course hour enrollment–which translate into measures of official full-time equivalent enrollment–is inelastic with respect to price and elastic with respect to household income. The intensive margin enrollment price elasticity estimates also support a high tuition/high financial aid pricing scheme that uses tuition revenue to cross-subsidize the price of enrollment for financially needy students, which maximizes college access for Black males.
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