As the U.S. continues to embrace a comprehensive plan for economic recovery, this article investigates the validity of the claim that investing in higher education will help restore state economic growth and prosperity. It presents the findings from a study that indicates that the most consistent predictors of state economic growth related to…

Student retention and low graduation rates are the most significant problems associated with state provided student aid. Evidence suggests that the problems are chronic to certain populations in state colleges and universities. This research examines lottery scholarship data to determine those factors that affect scholarship retention and…

Severe fiscal tensions threaten U.S. public higher education. Many policy solutions have been suggested, but it is difficult to subject these qualitative ideas to rigorous empirical evaluation. In this work, we employ an agent-based model of a representative state-funded public university system (including a flagship campus, an urban campus, and…

This study considers the relationship between federal academic earmarks and state appropriations for higher education. Often referred to as "pork," federal academic earmarks are both controversial and understudied. Using a unique panel dataset which spans 1990-2006, this study conducts a panel analysis with two-way state and year-fixed effects. It…

Although benefits can be a sizable part of an educator's total compensation, there has been little scholarly inquiry into the state pension plans for educators. Despite the fact that all defined benefit plans rely on the same basic formula for calculating annual pensions, they vary across states in the multiplier used, the method for calculating…

This article considers the role of higher education in state budgets. It empirically models and tests the balance wheel hypothesis in a robust framework. The balance wheel model posits that in good economic times, higher education is an attractive area for states to fund and tends to be funded at a higher rate than other state budget categories.…

In the United States, public higher education finance policy is primarily decided at the state level, and policies can vary dramatically across state lines. Data was used from 1989-1990 and 2008-2009 to describe these differences and how they have changed over time. Numerous aspects of each state's higher education system were examined--average…

Little empirical attention has been paid to state capital expenditures for higher education. While some anecdotal evidence exists that the process of appropriating capital dollars to higher education institutions is a particularly political process, no study has systematically examined the determinants of higher education state capital spending.…

Previous empirical literature finds that government expenditure on higher education has a negative, or null, effect on U.S. economic growth rates. This empirical result may be driven by omission of an important variable--the privatization of higher education. Using state-level panel data from 1970 to 2005, this analysis investigates whether the…

A Maintenance of Effort (MOE) provision for higher education was first adopted in the Higher Education Opportunity Act of 2008 and was included as a requirement for states to participate in the American Recovery and Reinvestment Act of 2009 (ARRA). The information in this article was presented before the U.S. House of Representatives Committee on…

A crucial issue in the debate on state support for higher education is the extent that a state's production of college graduates affects the state's education attainment. The view that many new graduates take their state-supported degrees to labor markets in other states undermines states' incentives to promote wider access to college. This study…

Congress has recently focused on the complex relationship between federal student aid, states' funding appropriations for higher education, and institutional tuition and fee levels. Fueling this focus is the ongoing cost shit in public higher education, from states to students and families, as well as to the federal government via student aid…

For decades, state funding of public historically black colleges and universities (HBCU) has been shown to be de facto discriminatory relative to the funding of their predominately white counterparts. Although the dual system has been legally dismantled, the disparate funding has remained in place in a number of ways. For example, recent research…

This article outlines a framework for evaluating the decision of undergraduate students to engage in term-time employment as a method of financing higher education. We then examine the impact of work on academic achievement and find that employment has modest negative effects on student grades, with a grade point average (GPA) falling by 0.007…

No empirical studies have attempted to explain why states invest differentially in their research and in their non-research universities, although these differences hold important implications for students, postsecondary systems, and society. Deploying a form of hierarchical-linear modeling, our study examines across-state variation in state…