Performance-based funding (PBF) policies with research incentives have grown in popularity over the years despite little understanding regarding whether they actually work. This study leverages a novel national data set to examine the impact of PBF research incentives on the research expenditures and total state appropriations among public 4-year…

Operating revenue for public higher education is derived from several sources, such as state appropriations, tuition, room and board, and contracts. State funding in particular constitutes a large share of revenue and is consequently critical for improving enrollment, completion, and labor market outcomes. However, states differ in how…

States provide substantial support for higher education through appropriations to public colleges and universities that can be used to maintain relatively low tuition levels and funds for financial aid. Higher education often receives disproportionate cuts during recessionary periods, and it faces potentially unprecedented reductions in coming…

State-level performance-based funding (PBF) policies are an increasingly common way to allocate funds to public colleges and universities. While a growing body of research has examined whether these policies are effective in improving student outcomes, little is known about how colleges respond to PBF policies. In this paper, we examine whether…