### Appendix B. Impact of discretionary income (tuition payment)

Dependent variable: Monthly change in non-educational consumption (expenditure) in real term

Independent variables: Tuition payment*, Year dummies, Month dummies, Squared age of head of household, Family size

Sample: FIES in 1984-2008 with any college students in any month during surveyed.

OLS estimation with robust estimator is used. Only the coefficients on tuition payment are reported.

***, ** and * denote 1%, 5% and 10% significance, respectively.

Case 1: Tuition payment (national + private universities) for new college students

Level Regression	Tuition payment	One month lag	Two month lag	# observations
Total	-0.3893	0.4168	0.0175	6121
(0.0263) $ *** $	(0.0216) $ *** $	(0.0111)	R squared=0.216
Durables	-0.0029	0.0054	0.0036	6121
(0.0044)	(0.0042)	(0.0036)	R squared=0.009
Semidurables	0.0110	0.0074	-0.0070	6121
(0.0044) $ ** $	(0.0041) $ * $	(0.0037) $ * $	R squared=0.043
Nondurables	0.0005	-0.0019	0.0022	6121
(0.0021)	(0.0017)	(0.0017)	R squared=0.192
Services	-0.3979	0.4059	0.0186	6121
(0.0254) $ ** $	(0.0208) $ ** $	(0.0094) $ ** $	R squared=0.260

Case 2: Tuition payment (national + private universities) for new college students with control group (incumbent college students)

Level Regression	Tuition payment	One month lag	Two month lag	# observations
Total	-0.3906	0.4094	0.0074	48757
(0.0379) $ *** $	(0.0364) $ *** $	(0.0059)	R squared=0.169
Durables	0.0023	0.0010	0.0016	48757
(0.0022)	(0.0021)	(0.0022)	R squared=0.002
Semidurables	0.0055	0.0045	-0.0007	48757
(0.00264) $ ** $	(0.0020) $ ** $	(0.0023)	R squared=0.017
Nondurables	0.0008	-0.0021	0.0007	48757
(0.0010)	(0.0008) $ *** $	(0.0009)	R squared=0.262
Services	-0.3992	0.4061	0.0058	48757
(0.0379) $ *** $	(0.0351) $ *** $	(0.0047)	R squared=0.212

Case 3: Tuition payment (national and private universities separately) for new college students

Level Regression	National tuition	One month lag	Two month lag	Private tuition	One month lag	Two month lag	# observations
Total	-0.3186	0.4018	0.0381	-0.3975	0.4199	0.0165	6121
(0.0469)***	(0.0388)***	(0.0276)	(0.0286)***	(0.0232)***	(0.0114)	R squared=0.216
Durables	0.0063	0.0143	0.0112	-0.0038	0.0048	0.0033	6121
(0.0102)	(0.0102)	(0.0138)	(0.0044)	(0.0042)	(0.0035)	R squared=0.009
Semidurables	0.0153	-0.0059	-0.0055	0.0104	0.0088	-0.0073	6121
(0.0091)*	(0.0092)	(0.0072)	(0.0046)**	(0.0043)**	(0.0038)*	R squared=0.044
Nondurables	0.0000	0.0084	-0.0032	0.0006	-0.0030	0.0028	6121
(0.0048)	(0.0046)*	(0.0046)	(0.0022)	(0.0018)*	(0.0017)	R squared=0.193
Services	-0.3402	0.3850	0.0356	-0.4047	0.4093	0.0176	6121
(0.0427)***	(0.0341)***	(0.0220)	(0.0278)***	(0.0226)***	(0.0097)*	R squared=0.260

Case 4: Tuition payment (national and private universities separately) for new college students with control group (incumbent college students)

Level Regression	National tuition	One month lag	Two month lag	Private tuition	One month lag	Two month lag	# observations
Total	-0.4016	0.4450	0.0081	-0.3895	0.4068	0.0076	48757
(0.0298)***	(0.0276)***	(0.0183)	(0.0398)***	(0.0380)***	(0.0060)	R squared=0.169
Durables	-0.0055	0.0056	0.0027	0.0029	0.0006	0.0015	48757
(0.0091)	(0.0072)	(0.0068)	(0.0023)	(0.0022)	(0.0023)	R squared=0.002
Semidurables	0.0189	-0.0078	-0.0080	0.0044	0.0054	-0.0002	48757
(0.0055)***	(0.0058)	(0.0058)	(0.0027)*	(0.0021)**	(0.0024)	R squared=0.017
Nondurables	0.0052	0.0009	-0.0034	0.0005	-0.0023	0.0010	48757
(0.0029)*	(0.0028)	(0.0029)	(0.0010)	(0.0008)***	(0.0009)	R squared=0.262
Services	-0.4202	0.4463	0.0168	-0.3974	0.4031	0.0053	48757
(0.0272)***	(0.0255)***	(0.0149)	(0.0397)***	(0.0367)***	(0.0048)**	R squared=0.213

Case 5: Tuition payment (national + private universities) for new college students

Log Regression	Tuition payment	One month lag	# observations
Total	-0.1369	0.1434	666
(0.0244)***	(0.0290)***	R squared=0.165
Durables	-0.2438	-0.1843	229
(0.13554)	(0.1391)	R squared=0.135
Semidurables	-0.0209	0.0245	913
(0.0315)	(0.0381)	R squared=0.170
Nondurables	0.0038	-0.0098	922
(0.0059)	(0.0066)	R squared=0.168
Services	-0.1345	0.1134	452
(0.0395)***	(0.0454)**	R squared=0.122

Case 6: Tuition payment (national + private universities) for new college students with control group (incumbent college students)

Log regression	Tuition payment	One month lag	# observations
Total	-0.1200	0.1251	2545
(0.0105)***	(0.0117)***	R squared=0.142
Durables	-0.0284	-0.0208	737
(0.0561)	(0.0535)	R squared=0.046
Semidurables	0.0075	0.0039	3156
(0.0150)	(0.0150)	R squared=0.072
Nondurables	0.0018	-0.0017	3204
(0.0028)	(0.0028)	R squared=0.152
Services	-0.1200	0.0993	1856
(0.0173)***	(0.0182)***	R squared=0.068