The notion of merit-aid is not a new development in higher education. Although previous researchers have demonstrated the impact of state-adopted merit-aid funding on student decision-making, fewer studies have examined institutional pricing responses to broad-based merit-aid policies. Using a generalized difference-in-difference approach, we extend previous empirical work by examining the impact of merit-aid on institutional pricing strategies while considering both the institution's tuition-setting authority and the relative strength of the merit-aid program. In this study, we find that colleges and universities with the authority to set their own tuition increased their in-state tuition and fees following broad-based merit-aid policy adoption; however, institutions with state-controlled tuition-setting authority respond to broad-based merit-aid policies by lowering their in-state tuition and fees. Our findings suggest that the incentives and dynamics of each state's policy environment are significant determinants of institutional responses to state-level policy adoptions.
Tuition-setting authority and broad-based merit aid
The effect of policy intersection on pricing strategies
Kramer, D. A., Ortagus, J. C., & Lacy, T. A. (2018). Tuition-setting authority and broad-based merit aid: The effect of policy intersection on pricing strategies. Research in Higher Education, 59(4), 489-518. https://doi.org/10.1007/s11162-017-9475-x
To contact an RTI author, request a report, or for additional information about publications by our experts, send us your request.
Multifaceted risk for non-suicidal self-injury only versus suicide attempt in a population-based cohort of adults
Pregnancy rates and clinical outcomes among women living with HIV enrolled in HPTN 052
The influence of mediators on the relationship between antenatal opioid agonist exposure and the severity of neonatal opioid withdrawal syndrome