Social and Behavioral Sciences Commons^™

Private Philanthropy In Financing Public Universities: Fundraising Stochastic Frontier And Efficiency Evaluations, G. Thomas Sav

Economics Faculty Publications

This study provides stochastic frontier analyses of private philanthropy in financing public universities in the United States. Panel data estimates of private giving –fundraising production frontiers and inefficiency effects are provided for an aggregate of 353 universities and separately for research intensive, doctoral granting, and master level institutions over the 2006-09 academic years. Inefficiency effects are modeled as set of university specific covariates, including medical schools, hospitals, executive employment and a time trend to capture potential effects of the global financial crisis on university fundraising efficiency. Efficiency scores are estimated across university levels and indicate that mean efficiencies range from …

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 …