Abstract
The purpose of this paper is to provide an estimate of the elasticity and cros-selasticities of demand for higher education facing an individual institution. The utility which a high school graduate derives from each educational option open to him is assumed to be a stochastic function of the attributes of that option. For certain types of utility functions the maximization of utility results in the logit probability model. This model is used to analyze the choices made by a sample of high school graduates in Hawaii. Estimates of the price elasticity and the cross-price elasticities of demand for enrollment at the University of Hawaii are obtained. It is found that the demand is quite inelastic with respect to both tuition and total cost of education. These estimates imply that changes in tuition will not affect enrollment appreciably.
Sign-in/Register to access full text options 
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callDisclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
