Social and Behavioral Sciences Commons^™

Private Giving Crowding Government Funding In Public Higher Education, G. Thomas Sav

Economics Faculty Publications

Problem Statement:

Private giving and government funding are critical revenue sources for public colleges and universities. If increased private giving reduces government funding, then that type and extent of crowding out carries important managerial and public policy implications.

Approach:

The study used a government funding reaction function and an instrumental variable approach to empirically estimate the potential for crowding out.

Results:

The study examined the extent to which private giving reduces or crowds out state government funding of public colleges and universities. Government free riding was at question and investigated to determine how active it is in terms of private …