The Review of Higher Education

This article estimates the standard demand equations for nonresident students using national, state, and institutional level data. The national-level analysis reveals a near-unitary price elasticity, but increases in nonresident tuition and fees do not decrease nonresident enrollment. Finally, results from the institutional level of analysis (preferred) indicate rather inelastic student responsiveness to changes in nonresident tuition and fees. On average, a 1% increase in nonresident tuition and fees at a public institution is associated with a 0.2% reduction in its nonresident enrollment. Furthermore, price elasticity is smaller at selective institutions than at less selective ones.