Determinants of Student Demand at Florida Southern College

Date
2012-07
Authors
Brown, Carl C.
McClary, Andrea
Bellingar, Jared
Journal Title
Journal ISSN
Volume Title
Publisher
Journal of Case Research in Business and Economics
Abstract
Determining the factors impacting student demand for higher education at Florida Southern College enables calculation of the effect that tuition levels and other variables have on enrollment and revenue. A times series study utilizing data on published tuition, net tuition and fees, and other potential explanatory factors is conducted to determine their impact on both freshman and total enrollment levels at Florida Southern. Separate analyses of students hailing from Florida and from out-of-state are conducted to determine if there are significant differences in the factors impacting the decisions by these groups to enroll at Florida Southern. In addition, estimates of price elasticities of demand are calculated based on the available data. This study finds that price-adjusted net tuition (including fees) is a statistically significant determinant of freshman enrollment, as is real per capita income, the annual number of high school graduates, and the US unemployment rate. The net tuition elasticity of demand among Florida freshman students is -1.8, while net tuition is statistically insignificant as a determinant of enrollment by non-Florida freshman students. The study also finds that the price elasticity of demand for the aggregate freshman student population has increased over time as net tuition has risen in real terms. When tuition +fees and financial aid are entered as separate variables (as opposed to being combined as net tuition) into the regressions, the explanatory value of the regression equations increase.
Description
Keywords
Net tuition, Price elasticity, Price discrimination
Citation
DOI