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Federal policies, state responses, and community college outcomes: Testing an augmented Bennett hypothesis

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  • Frederick, Allison B.
  • Schmidt, Stephen J.
  • Davis, Lewis S.

Abstract

We estimate the impact of increases in Federal student aid and higher education funding, such as the recently proposed American Graduation Initiative (AGI), on the outcomes of community colleges, including enrollments, list and average tuitions, and educational quality. We develop a reduced form model of state-level education policy in which state policy makers, who have objectives that differ from those of Federal policy makers, respond to changes in Federal policies. Our empirical specification treats state and institutional variables as endogenous; we interpret the coefficients as measuring the responses of state and institution officials to changes in Federal policies. We simulate the effects of AGI and find little evidence that states recapture Federal education resources. AGI would have a significant effect on educational quality but a limited effect on enrollments. An equivalent increase in Federal student aid would have greater impact on access and enrollments, but decrease educational quality.

Suggested Citation

  • Frederick, Allison B. & Schmidt, Stephen J. & Davis, Lewis S., 2012. "Federal policies, state responses, and community college outcomes: Testing an augmented Bennett hypothesis," Economics of Education Review, Elsevier, vol. 31(6), pages 908-917.
  • Handle: RePEc:eee:ecoedu:v:31:y:2012:i:6:p:908-917
    DOI: 10.1016/j.econedurev.2012.05.009
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    References listed on IDEAS

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    Cited by:

    1. Carlos Hoyos-Pontón & Alexander Villarraga-Orjuela, 2020. "Impactos del programa Ser Pilo Paga en los precios de matrícula de una muestra de universidades acreditadas en Colombia," Documentos IEEC 018142, Universidad del Norte.
    2. Grey Gordon & Aaron Hedlund, 2017. "Accounting for the Rise in College Tuition," NBER Chapters, in: Education, Skills, and Technical Change: Implications for Future US GDP Growth, pages 357-394, National Bureau of Economic Research, Inc.
    3. Fridman, A. & Verbetskaia, M., 2020. "Government regulation of the market for higher education," Journal of the New Economic Association, New Economic Association, vol. 45(1), pages 12-43.
    4. Aaron Hedlund & Grey Gordon, 2017. "Accounting for Tuition Increases at U.S. Colleges," 2017 Meeting Papers 1550, Society for Economic Dynamics.
    5. Alla Fridman & Alexey Verbetsky, 2017. "Universities' competition under dual tuition system," Economics Bulletin, AccessEcon, vol. 37(3), pages 2122-2132.

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    More about this item

    Keywords

    Demand for schooling; Educational finance; Expenditures; Grants; State and Federal aid;
    All these keywords.

    JEL classification:

    • I22 - Health, Education, and Welfare - - Education - - - Educational Finance; Financial Aid
    • I28 - Health, Education, and Welfare - - Education - - - Government Policy
    • H52 - Public Economics - - National Government Expenditures and Related Policies - - - Government Expenditures and Education
    • H75 - Public Economics - - State and Local Government; Intergovernmental Relations - - - State and Local Government: Health, Education, and Welfare

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