Get 20M+ Full-Text Papers For Less Than $1.50/day. Start a 14-Day Trial for You or Your Team.

Learn More →

How do Revenue Variations Affect Expenditures Within U.S. Research Universities?

How do Revenue Variations Affect Expenditures Within U.S. Research Universities? Using Integrated Postsecondary Education Data System (IPEDS) figures on the 96 Research Extensive Institution in academic year 2007–2008, we employ panel data from academic year 1984–1985 to 2007–2008 to identify revenue-expenditure relationships. Although we consider a wide range of functional expenditure categories, we focus our analysis on instructional and research expenditures because these categories tie most closely to the core missions of research universities. Results suggest tight relationships between some revenue and expenditure categories for some institutions. For public universities, these relationships tend to follow expected paths. For example, a large proportion of tuition revenues tend to be spent in the functional category of instruction. Private universities evidence a somewhat different pattern, with revenues generally expended in the pursuit of merit aid and research. This suggests that private universities strategically deploy revenues from a wide variety of sources to secure particular students and to conduct research activities. However, the ways in which universities and IPEDS classify faculty work raises some questions about the transparency of various categories, and suggests that some current conceptions of how revenues are expended on research and instruction functions may be less than straightforward. http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png Research in Higher Education Springer Journals

How do Revenue Variations Affect Expenditures Within U.S. Research Universities?

Download PDF
26 pages

Loading next page...
 
/lp/springer-journals/how-do-revenue-variations-affect-expenditures-within-u-s-research-lk9AxQZ1sZ
Publisher
Springer Journals
Copyright
Copyright © 2011 by Springer Science+Business Media, LLC
Subject
Education; Higher Education
ISSN
0361-0365
eISSN
1573-188X
DOI
10.1007/s11162-011-9248-x
Publisher site
See Article on Publisher Site

Abstract

Using Integrated Postsecondary Education Data System (IPEDS) figures on the 96 Research Extensive Institution in academic year 2007–2008, we employ panel data from academic year 1984–1985 to 2007–2008 to identify revenue-expenditure relationships. Although we consider a wide range of functional expenditure categories, we focus our analysis on instructional and research expenditures because these categories tie most closely to the core missions of research universities. Results suggest tight relationships between some revenue and expenditure categories for some institutions. For public universities, these relationships tend to follow expected paths. For example, a large proportion of tuition revenues tend to be spent in the functional category of instruction. Private universities evidence a somewhat different pattern, with revenues generally expended in the pursuit of merit aid and research. This suggests that private universities strategically deploy revenues from a wide variety of sources to secure particular students and to conduct research activities. However, the ways in which universities and IPEDS classify faculty work raises some questions about the transparency of various categories, and suggests that some current conceptions of how revenues are expended on research and instruction functions may be less than straightforward.

Journal

Research in Higher Education – Springer Journals

Published: Dec 20, 2011

References

  • The silent crisis: The relative capacity of public universities to compete for faculty
    Alexander, FK
  • 2010 AAU facts and figures
  • AAU membership policy
  • AAU adds Georgia Tech as a member
  • Health care, education, and the cost disease: A looming crisis for public choice
    Baumol, WJ
  • Performing arts the economic dilemma: A study of problems common to theater, opera, music, and dance
    Baumol, WJ; Bowen, WG
  • The cost of higher education
    Bowen, HR
  • Sorting things out: Classification and its consequences
    Bowker, GC; Star, SL
  • From technology politics to technology policy
    Branscomb, LM
  • In pursuit of prestige: Strategy and competition in U.S. higher education
    Brewer, DJ; Gates, SM; Goldman, CA
  • Technology, R&D, and the economy
    Brooks, H
  • The ‘indefinite discipline’ of competitiveness benchmarking as a neoliberal technology of government
    Bruno, I
  • Science, technology, and government for a changing world
  • Replacing state appropriations with alternative revenue sources: The case of voluntary support
    Cheslock, JJ; Gianneschi, M
  • Institutions of higher education as multi-product firms: Economies of scale and scope
    Cohn, E; Rhine, SLW; Santos, MC
  • Trends in student aid 2010
  • Endless frontier, limited resources: U.S. R&D policy for competitiveness
  • Towards a new economics of science
    Dasagupta, P; David, PA
  • The impact of sector on school organizations: Institutional and market logics
    Davies, S; Quirke, L
  • The iron cage revisited: Institutional isomorphism and collective rationality in organizational fields
    DiMaggio, PJ; Powell, WW
  • The new institutionalism in organizational analysis
    DiMaggio, PJ; Powell, WW
  • Tuition rising: Why college costs so much
    Ehrenberg, RG
  • Science and the university
    Ehrenberg, RG; Rizzo, MJ; Jakubson, GH
  • Why does college cost so much?
    Feldman, DH; Archibald, RB
  • Diversification of revenue strategies: Evolving resource dependence in nonprofit organizations
    Froelich, KA
  • Isomorphism, homogeneity, and rationalism in university retrenchment
    Gates, GS
  • Knowledge and money: Research universities and the paradox of the marketplace
    Geiger, RL
  • Tapping the riches of science: Universities and the promise of economic growth
    Geiger, RL; Sa, CM
  • Hybrid steering approaches with respect to European higher education
    Gornitzka, A; Maassen, P
  • Science, money and politics: Political triumph and ethical erosion
    Greenberg, D
  • Economics of academic research and its implications for higher education
    Hare, P; Wyatt, G
  • An examination of costs at four-year public colleges and universities between 1989 and 1998
    Harter, JFR; Wade, JA; Watkins, TG
  • Implications of the changing funding base of public universities
    Hasbrouck, N. S.
  • Handbook on education policy research
    Hearn, JC; Lacy, TA
  • The states and public higher education policy
    Heller, DE
  • Cost sharing and accessibility in higher education: A fairer deal?
    Heller, DE
  • The dynamics of institutionalization: Transformation processes in Norwegian fisheries
    Holm, P
  • Real effects of academic research
    Jaffe, AS
  • Higher education institutions’ costs and efficiency: Taking the decomposition a further step
    Johnes, G; Johnes, J
  • Patterns of finance: Revolution, evolution, or more of the same?
    Johnstone, DB
  • The economics and politics of cost sharing in higher education: Comparative perspectives
    Johnstone, DB
  • The economics of universities in a new age of funding options
    Just, RE; Huffman, WE
  • Exploring the limits of the new institutionalism: The causes and consequences of illegitimate organizational change
    Kraatz, MS; Zajac, EJ
  • Innovation in complex social systems
    Lacy, TA
  • The economic value of higher education
    Leslie, LL; Brinkman, P
  • Rising administrative costs: Seeking explanations
    Leslie, LL; Rhoades, G
  • Academic research underlying industrial innovations: Sources, characteristics and financing
    Mansfield, E
  • Academic research and industrial innovation: An update of empirical findings
    Mansfield, E
  • Higher learning, greater good: The private and social benefits of higher education
    McMahon, WW
  • The student aid game: Meeting need and rewarding talent in American higher education
    McPherson, MS; Schapiro, MO
  • The Mathew effect in science
    Merton, RK
  • Science bought and sold: Essays in the economics of science
    Mirowski, PM; Sent, EM
  • “A rose by any other name”: Which colleges became universities
    Morphew, CC
  • The cost of prestige
    Morphew, CC; Baker, BD
  • Using institutional theory to reframe research on academic drift
    Morphew, CC; Huisman, J
  • Science, technology, and the federal government: National goals for a new era
  • Allocating federal funds for science and technology
  • Science and engineering indicators, 2010
  • The simple economics of basic scientific research
    Nelson, RR
  • Memorandum for the heads of executive departments: Science and technology priorities for the FY 2011 budget (M-09–27)
    Orszag, PR; Holdren, JP
  • Economic perspectives on rising college tuition
    Paulsen, MB; Smart, JC
  • Understanding the forms of government in today’s democratic societies: An introduction
    Pestre, D
  • The external control of organizations: A resource dependence perspective
    Pfeffer, J; Salancik, GR
  • If and when money matters: The relationships among educational expenditures, student engagement and students’ learning outcomes
    Pike, GR; Kuh, GD; McCormick, AC; Ethington, CA; Smart, JC
  • Educational expenditures and student engagement: When does money matter?
    Pike, GR; Smart, JC; Kuh, GD; Hayek, JC
  • R&D funding sources and university technology transfer: What is stimulating universities to be more entrepreneurial?
    Powers, JB
  • The university in ruins
    Readings, B
  • College choices: The economics of where to go, when to go, and how to pay for it
    Rizzo, MJ; Ehrenberg, RG
  • A history of change in the third mission of higher education: The evolution of one-way service to interactive engagement
    Roper, C; Hirth, MA
  • Shaping institutional environments: The process of becoming legitimate
    Rusch, EA; Wilbur, C
  • The relationship between institutional expenditures and degree attainment at baccalaureate colleges
    Ryan, JF
  • Institutional expenditures and student engagement: A role for financial resources in enhancing student learning and development?
    Ryan, JF
  • Resource allocation in public research universities
    Santos, JL
  • Institutionalism “old” and “new”
    Selznick, P
  • Academic capitalism: Politics, policies, and the entrepreneurial university
    Slaughter, S; Leslie, LL
  • The emergence of a competitiveness research and development policy coalition and the commercialization of academic science and technology
    Slaughter, S; Rhoades, G
  • Academic capitalism and the new economy: Markets, state, and higher education
    Slaughter, S; Rhoades, G
  • From endless frontier to basic science for use: Social contracts between science and society
    Slaughter, S; Rhoades, G
  • Influences of institutional expenditure patterns on the development of students’ leadership competencies
    Smart, JC; Ethington, CA; Riggs, RO; Thompson, MD
  • Pasteur’s quadrant: Basic science and technological innovation
    Stokes, DE
  • A history of American higher education
    Thelin, JR
  • Organizational socialization in higher education
    Tierney, WG
  • The production of bachelor’s degrees and financial aspects of state higher education policy: A dynamic analysis
    Titus, MA
  • Institutional environments and resource dependence: Sources of administrative structure in institutions of higher education
    Tolbert, PS
  • The finance of higher education: Theory, research, policy, and practice
    Toutkoushian, RK
  • Going broke by degree: Why college costs so much
    Vedder, R
  • Models of institutional resource allocation: Mission, market, and gender
    Volk, CS; Slaughter, S; Thomas, SL
  • The nonprofit mission and its financing
    Weisbrod, BA
  • Subsidies, hierarchy and peers: The awkward economics of higher education
    Winston, G
  • Differentiation among U.S. colleges and universities
    Winston, G
  • College choices: The economics of where to go, when to go, and how to pay for it
    Winston, GC; Zimmerman, DJ
  • Federal funds for research and development: Fiscal years 2007–2009
    Yamaner, M
  • Does state funding affect graduation rates at public four-year colleges and universities?
    Zhang, L
  • Faculty employment and R&D expenditures at research universities
    Zhang, L; Ehrenberg, RG