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Estimating the Effects of Federal Research Funding on Universities using Alumni Representation on Congressional Appropriations Committees

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Author Info
A. Abigail Payne
Aloysius Siow

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Abstract

This paper estimates the effects of federal research funding on 71 research universities. We focus on the number of and citations to articles published, patents issued, and faculty salaries. Using a panel data set that spans from 1972 to 1994, we control for potential endogeneity and omitted variables bias in our regressions by using a data set that links U.S. Congress members on the appropriations committee with their undergraduate alma mater. Alumni representation lowers the shadow price of federal funding. Using our preferred instrumental variables specification, we find an increase of $1 million in federal research funding (1993$) to a university results, on average, in 12 more articles, .34 more patents, and $152,015 more in total faculty salaries. Citations to articles publish falls by .08 citations. So when the shadow price of federal research funding falls, as a first approximation, universities buy more federal research funding and produce more but not necessarily higher quality research output.

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Paper provided by University of Toronto, Department of Economics in its series Working Papers with number siow-99-02.

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Length: 49 pages
Date of creation: 11 Dec 1998
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Handle: RePEc:tor:tecipa:siow-99-02

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I2 - Health, Education, and Welfare - - Education

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References listed on IDEAS
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.:
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  3. John Bound & Clint Cummins & Zvi Griliches & Bronwyn H. Hall & Adam B. Jaffe, 1984. "Who Does R&D and Who Patents?," NBER Chapters, in: R & D, Patents, and Productivity, pages 21-54 National Bureau of Economic Research, Inc. [Downloadable!]
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Cited by:
(explanations, 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.)

  1. Isaac C. Rischall, . "The Roles of Education, Skill and Parental Income in Determining Wages," Canadian International Labour Network Working Papers 29, McMaster University. [Downloadable!]
  2. De Figueiredo, John M. & Silverman, Brian S., 2002. "Academic Earmarks and the Returns to Lobbying," Working papers 4245-02, Massachusetts Institute of Technology (MIT), Sloan School of Management. [Downloadable!]
    Other versions:
  3. A. Abigail Payne & Joanne Roberts, 2009. "Government Oversight of Public Universities: Are Centralized Performance Schemes Related to Increased Quantity or Quality?," Working Papers 2009-04, Department of Economics, University of Calgary, revised 23 Jan 2009. [Downloadable!]
  4. A. Payne, 2001. "Measuring the Effect of Federal Research Funding on Private Donations at Research Universities: Is Federal Research Funding More than a Substitute for Private Donations?," International Tax and Public Finance, Springer, vol. 8(5), pages 731-751, November. [Downloadable!] (restricted)
  5. A Abigail Payne, 2001. "The Effects of Congressional Appropriation Committee Membership on the Distribution of Federal Research Funding to Universities," Public Economics 0111003, EconWPA. [Downloadable!]
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