An Empirical Analysis on the Interdependence Relation between Higher Education Tuition Expenditure and Urban Residents’ Income—Based on ECM Model

Higher education is a quasi-public product, and the form of tuition standard of higher education should base on social benefits and market benefit. Our public college tuition standard is the embodiment of social benefit and market benefit. But, there also exist theoretic defect and practical difficulties in formulating college tuition standard, such as higher education tuition be high, people burden getting worse and not consider the economic bear ability of residents, etc. On account of the above-mentioned existing problems, in this paper, we firstly introduced the research background and research meaning of higher education tuition; Then, we carried out an empirical analysis on the relationship between Chinese higher education tuition and urban residents’ income with error correction model of econometrics; Finally, we made analysis and explanation on the above-mentioned operation result.