Nearly 7 years into the recovery from the Great Recession, two glaring problems remain in the U.S. economy. One is a significant slowdown in the growth of productivity (the amount of output and income generated in an average hour of work). The other is the destructive rise in income inequality in recent decades due largely to big corporations and…

Created by the U.S. Congress in 2006, the Teacher Incentive Fund (TIF) represents the first federal initiative targeted directly at state and district efforts to introduce performance measures into educator compensation. TIF responds to a growing body of evidence that existing pay structures do not respond to labor force realities or adequately…

In higher education, three generally recognized rationales for federal involvement in financial aid exist: (1) Promoting equality of opportunity: Those from poor households are less likely to attend college for a variety of reasons; (2) Credit market imperfections: Students may not have access to the credit needed to make profitable investments in…

The number of prisoners in the United States has accelerated over the past thirty years, giving it the highest incarceration rate in the world. The rise in the prison rate has coincided with the ascendancy of neoliberal policies of governance. These include, deregulation of markets, reduction of welfare services, and harsh punitive measures for…

Access to higher education in the United States is increasingly on the public policy agenda as funding constraints affect the realization of college attendance for many middle and low-income students. We use the Pell Grant as a proxy for low-income participation, and the percent of undergraduate students receiving a Pell Grant (Pell Prevalence…

The U.S. Department of Education recently published a notice of draft priorities and requirements for applying for "Race to the Top" (RTT) funding--$4.35 billion in competitive federal grants. Even though it constitutes the smallest piece of education stimulus funding in the American Recovery and Reinvestment Act, "Race to the…

Academic research institutions have long been important economic anchors for New York City. They provide thousands of jobs and serve as a magnet for talented students and faculty, who inject hundreds of millions of dollars into the local economy through federal research grants. Yet, even though New York's concentration of top-fight scientific…

As Congress debates the reauthorization of the Higher Education Act (HEA), it should heed Friedrich Hayek's warning that democracy is "peculiarly liable, if not guided by accepted common principles, to produce over-all results that nobody wanted." One result of the federal government's student financial aid programs is higher tuition…

The Hungarian government has recently been focusing on innovation policy as part of a wider campaign to improve the business environment. This paper first underscores the importance of a good general business climate in encouraging both formal and informal R&D activity as well as ensuring Hungary benefits from the international diffusion of…