Many public universities have sought to increase the number of students they enroll from other states, with the assumption that a larger share of nonresident students increases institutional revenues and prestige. In this paper, I examine the extent to which out-of-state undergraduate student enrollment shares are associated with changes in per-student revenue and expenditure patterns at four-year public universities both as a whole and by selectivity and Carnegie classification. I find that an increase in the percentage of students from out of state is associated with decreases in per-student tuition revenue and is often associated with a decline in per-student expenditures.
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Copyright (c) 2021 Robert Kelchen