The Relationship Between Big-Time College Football and State Appropriations for Higher Education
Do big-time college sports affect state appropriations to public colleges and universities? Little attention has been given to the possibility that big-time athletic programs generate economic benefits for a university at the state capital. The paper estimates a reduced form model of the determination of annual state appropriations to public universities, including institution-specific effects to control for unobservable factors like mission and reputation that could affect appropriations. The results suggest that institutions fielding Division I-A football programs receive 8% more in annual state appropriations — about $2.6 million in real 1982 dollars — than those without such programs. Bowl appearances and national rankings do not lead to additional appropriations. These results suggest that the total economic benefit associated with big-time athletic programs may be larger than previously thought and provide insight into why the number of institutions fielding Division I-A college football programs increased by 10% from 1998 to 2002.
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Volume (Year): 1 (2006)
Issue (Month): 2 (May)
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- Brad R. Humphreys, 2000. "Do Business Cycles Affect State Appropriations to Higher Education?," Southern Economic Journal, Southern Economic Association, vol. 67(2), pages 398-413, July.
- Creedy, John & Francois, Patrick, 1993. "Financing Higher Education: A General Equilibrium Public Choice Approach," The Economic Record, The Economic Society of Australia, vol. 69(204), pages 1-9, March.
- Becker, Gary S, 1983. "A Theory of Competition among Pressure Groups for Political Influence," The Quarterly Journal of Economics, MIT Press, vol. 98(3), pages 371-400, August.
- Creedy, John & Francois, Patrick, 1990. "Financing higher education and majority voting," Journal of Public Economics, Elsevier, vol. 43(2), pages 181-200, November.
- Hoenack, Stephen A. & Pierro, Daniel J., 1990. "An econometric model of a public university's income and enrollments," Journal of Economic Behavior & Organization, Elsevier, vol. 14(3), pages 403-423, December.
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