Abstract

What explains the different levels of tuition and financial aid observed in the United States? This study hypothesizes that state-level political characteristics account for much of the variation observed. Of particular importance are the ideology of state legislators and the relative influence of public and private institutions. Estimates of a simultaneous equation model utilizing panel data for 47 states over 15 years supports the hypothesis that state political characteristics are associated with the observed differences in tuition and financial aid across states.

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