State Fiscal Constraints and Higher Education Spending: The Role of Medicaid and the Business Cycle


Thomas Kane and Peter Orszag document the decline in higher education over the past 20 years. They examine the interaction between state appropriations for higher education, other state budget items and the business cycle. Included is a discussion of the effect that declining state support has on the quality of teaching and research at public institutions with suggestions of possible policy responses to the shifting environment.

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