Friday, April 13, 2012

From the Fiscal Times: The Surprising Reason Why Colleges Raise Tuition

http://www.thefiscaltimes.com/Articles/2012/04/12/The-Surprising-Reason-Why-Colleges-Raise-Tuition.aspx#page1


The Surprising Reason Why Colleges Raise Tuition


April 12, 2012
"Some would argue that faculty salaries (Baumol's cost disease) or institutional aid (college-funded scholarships and discounts) are important, but forthcoming examinations show that they are negligible and minor respectively. One factor that Fethke dismisses is the idea that increases in financial aid lead to higher tuition, known as the Bennett Hypothesis."

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