State expenditures to public higher education and regional funding norms: a panel data analysis

Abstract

Using well understood regional indicators we seek to understand if and how region influences state expenditures to public higher education. We employ an econometric technique that allows for estimation of parameter estimates on time-invariant regressors (Census divisions) from 1995-1996 through 2007-2008. Additionally, we are able to provide solid evidence that region matters while also including other well-known drivers of state expenditures to public higher education. We conclude that these relationships are often overlooked in higher education economics research, for better or for worse, and hence warrant further investigation since implications exist for future and prospective policy.