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

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  • A. Abigail Payne
  • Aloysius Siow

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.

Suggested Citation

  • A. Abigail Payne & Aloysius Siow, 1998. "Estimating the Effects of Federal Research Funding on Universities using Alumni Representation on Congressional Appropriations Committees," Working Papers siow-99-02, University of Toronto, Department of Economics.
  • Handle: RePEc:tor:tecipa:siow-99-02
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    References listed on IDEAS

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    Citations

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    Cited by:

    1. Isaac C. Rischall, "undated". "The Roles of Education, Skill and Parental Income in Determining Wages," Canadian International Labour Network Working Papers 29, McMaster University.
    2. A. Abigail Payne, 2003. "The Effects of Congressional Appropriation Committee Membership on the Distribution of Federal Research Funding to Universities," Economic Inquiry, Western Economic Association International, vol. 41(2), pages 325-345, April.
    3. Ehrenberg, R.G.Ronald G., 2004. "Econometric studies of higher education," Journal of Econometrics, Elsevier, vol. 121(1-2), pages 19-37.
    4. 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.
    5. repec:clg:wpaper:2009-04 is not listed on IDEAS
    6. 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;International Institute of Public Finance, vol. 8(5), pages 731-751, November.

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    • I2 - Health, Education, and Welfare - - Education

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