The Supply Side of Higher Education: Colleges and Universities
College Pricing and Financial Aid: Is there a Connection?
This paper examines the effects of financial aid policies on the behavior of postsecondary institutions. Using the introduction of the Georgia HOPE Scholarship as a natural experiment, it investigates the impact of the policy on college pricing, institution aid, expenditures, and state appropriations. The results suggest that four-year colleges in Georgia, particularly private institutions, did respond by increasing student charges. In the most extreme case, colleges recouped approximately 30 percent of the scholarship award. As a result, the institutional responses reduced the intended benefit of the scholarship and increased the cost of college for non-recipients.
Long, B. T. (2003) “The Connection between Government Aid and College Pricing.” Journal of Student Financial Aid, vol. 33, no. 2.
Accountability and Institutional Incentives
Long, B. T. (2010) “The Supply Side of Higher Education: Higher Education Finance and the Potential of Using Institutional Incentives to Support Student Success.” Prepared for the project on Reform and Innovation in the New Ecology of U.S. Higher Education, Stanford University. Principal Investigators: Mitchell Stevens and Michael Kirst.