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

Charles Scott, Nancy Williams () and Frederick Derrick

Atlantic Economic Journal, 2015, vol. 43, issue 3, 337-348

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

Keywords: Input–output; Education subsidies; I00; E62 (search for similar items in EconPapers)
Date: 2015
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DOI: 10.1007/s11293-015-9468-0

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