ABSTRACT
Many states have tuition reciprocity agreements that allow residents to attend college in another state without having to pay out-of-state tuition. In addition to providing residents with affordable access to education, states avoid costly duplication of programs and facilities, and universities can direct their resources to improving academic quality. The chapter shows how reciprocity may influence enrollment and campus finances, and examines the impact of Western Undergraduate Exchange (WUE) students on institutional enrollment yield and net tuition revenues using data from a public four-year research university. Higher education researchers have long proposed that college-bound students may be more price sensitive as a result of sharp changes to tuition and aid policies. L. Dickson and M. Pender showed that tuition discounts for non-citizens in the state of Texas has a positive effect on their enrollment at a number of public institutions in the state and a negative effect on enrollment at one private university whose tuition was unchanged by the policy.
