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Public State Subsidy of Private Higher Ed Institutions: Does It Pay for Itself in Maryland?

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  • Charles Scott
  • Nancy Williams
  • Frederick Derrick

Abstract

The question addressed in this paper is whether there is an annual net gain to the state economy on a per student basis as a result of state subsidies to private institutions of higher education. In addition, the annual economic impact of adding a student at a private institution is compared to the impact of an additional student at a public institution. Because of Maryland’s 40-year history of direct appropriations to private non-profit institutions, the analysis focuses on the state of Maryland and employs input–output methodology. Due to the high percentage of out-of-state students and high tuition, the typical new student in a private higher education institution adds significant new spending to the state leading to a net positive tax payback on the subsidy. Copyright International Atlantic Economic Society 2015

Suggested Citation

  • Charles Scott & Nancy Williams & Frederick Derrick, 2015. "Public State Subsidy of Private Higher Ed Institutions: Does It Pay for Itself in Maryland?," Atlantic Economic Journal, Springer;International Atlantic Economic Society, vol. 43(3), pages 337-348, September.
    • Handle: RePEc:kap:atlecj:v:43:y:2015:i:3:p:337-348
    DOI: 10.1007/s11293-015-9468-0
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    References listed on IDEAS

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    More about this item

    Keywords

    Input–output; Education subsidies; I00; E62;
    All these keywords.

    JEL classification:

    • I00 - Health, Education, and Welfare - - General - - - General
    • E62 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - Fiscal Policy; Modern Monetary Theory

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