State funding for public higher education: explaining the great retreat
AbstractThis study examines reasons for the decline in state funding for public higher education. Prior studies point to Medicaid costs, limitations on tax revenues, income inequality, and Pell grants, but do not estimate their relative importance. Results in this study indicate that income inequality, Pell grants, and K-12 funding are the dominant factors. Pell grants in particular, create powerful incentives for states to substitute Federal dollars for their own. Estimates are identified using 5-year difference-in-differences for 49 states from 1957 to 2007. Regression, instrumental-variables, and Granger-causality estimates yield consistent results.
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Bibliographic InfoPaper provided by University Library of Munich, Germany in its series MPRA Paper with number 39732.
Date of creation: Mar 2012
Date of revision: Mar 2012
higher education; pell grants; k=12 education; public funding;
Find related papers by JEL classification:
- D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution
- A1 - General Economics and Teaching - - General Economics
- H52 - Public Economics - - National Government Expenditures and Related Policies - - - Government Expenditures and Education
This paper has been announced in the following NEP Reports:
- NEP-ALL-2012-07-08 (All new papers)
- NEP-LAB-2012-07-08 (Labour Economics)
- NEP-PBE-2012-07-08 (Public Economics)
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Robert B Archibald & David H Feldman, 2004.
"State Higher Education Spending and the Tax Revolt,"
- Robert B. Archibald & David H. Feldman, 2004. "State Higher Education Spending and the Tax Revolt," Working Papers 10, Department of Economics, College of William and Mary.
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