Browsing by Author "Lara, Bernardo"
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- The Effect of Market Integration on Public Higher EducationLara, Bernardo (Center for Education Policy Analysis, 2014-01-30)This paper assesses the relationship between prices and market integration in public higher education. The analysis focuses on the effect of Tuition Reciprocity Agreements (TRAs) on in-state resident tuition and fees of 4-year public institutions. Those agreements, which lower tuition for out-of-state students, can be understood as market integration devices. Market integration through TRAs is analyzed under the framework of an in-state subsidized market where demand has now access to a bigger choice set of partially subsidized institutions, changing decisions towards higher expenditure and quality. Using longitudinal data, I present strong evidence that the market integration of TRAs sparked an increase in 4-year public institution in-state prices. The result holds for both selective and non-selective institutions. In the same line, the TRAs have also increased the faculty/student ratio among selective institutions. These findings rearm the idea that part of the increase of prices in higher education is explained by market integration, as suggested by Hoxby (1997).
- Identifying Preferences for Equal College Access, Income, and Income EqualityLara, Bernardo; Shores, Kenneth A. (Center for Education Policy Analysis (CEPA), 2018-05-01)Revealed preferences for equal college access may be due to beliefs that equal access increases societal income or income equality. To isolate preferences for those goods, we implement an online discrete choice experiment using social statistics generated from true variation among commuting zones. We find that, ceteris paribus, the average income that individuals are willing to sacrifice is (i) $4,998 dollars to increase higher education (HE) enrollment by 1 standard deviation (14%); (ii) $1,168 dollars to decrease rich/poor gaps in HE enrollment by 1 standard deviation (8%); (iii) $2,897 to decrease the 90/10 income inequality ratio by 1 standard deviation (1.66).