The Determinants of Public Revenues for Higher and Lower Education: A Thirty-Year Perspective

Abstract

This longitudinal study examines the determinants of higher education revenues per capita, lower education revenues per capita, and the ratio of the two over a 30-year period. Demographic variables (percentage of population in the appropriate age group, education of the adult population, etc.) are unimportant, as is personal income per capita. The most important variables are a historical one and two political variables. The historical variable, density of population in 1860, measures the propensity of states to develop private higher education before passage of the Morrill Act The fact that the two political variables (percentage of taxes raised at the state level and taxes as a percentage of income) are important implies that the dependent variables are capable of being manipulated by the political process.y is the ratio of public revenues for higher education to those for elementarysecondary education four times as high in some states as in others? Why do some states spend 3% of their citizens' personal income on public elementary-secondary education whereas others spend more than 7%? Similarly, why do some spend only .5% of personal income on public higher education while others spend four times that percentage? This research was undertaken to answer such questions. The fact that data are available on a consistent basis over a 30-year period makes it possible to look at changes in the determinants of such revenues with a unique multiyear perspective.This paper is an exploratory study of the factors that influence the relative governmental effort made by states towardThe assistance of Gretchen. Hughes in data collection is greatly appreciated, as are the comments of anonymous reviewers.