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Category Archives: H75

Benefit Spillovers and Higher Education Financing: An Empirical Analysis of Brain Drain and State-Level Investment in Public Universities

By Chinmany G. Pandit

This paper analyzes the impact of out-migration of college graduates on state higher education investment. A three-stage least squares regression model with state and year fixed effects is developed and estimated, addressing the relationship between state legislative appropriations, tuition, and educated out-migration across 49 U.S. states from 2006-2015. The results support the notion that states respond negatively to benefit spillovers in higher education: for every one percent increase in the rate of educated out-migration, state appropriations decrease by 1.92 percent (roughly $140 per student). These findings suggest that an education subsidy
provided to states may be necessary to prevent underinvestment in higher education.

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Advisor: Thomas Nechyba | JEL Codes: H7, H75, I22, I28, R23

Neighborhood Effects and School Performance: The Impact of Public Housing Demolitions on Children in North Carolina

By Rebecca Aqostino

This study explores how the demolitions of particularly distressed public housing units, through the Home Ownership for People Everywhere (HOPE VI) grants program, have affected academic outcomes for children in adjacent neighborhoods in Durham and Wilmington, North Carolina. I measure neighborhood-level changes and individual effects through regression analysis. All students in demolition communities are compared to those in control communities: census blocks in the same cities with public housing units that were not demolished. Those in the Durham experiment community experienced statistically significant gains when compared to those in the control communities; the effect is insignificant in Wilmington.

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Advisor: Charles Becker | JEL Codes: C23, H41, H52, H75, I24, I25 | Tagged: Achievement, Demolitions, Distressed Housing, HOPE VI, Neighborhood Effects, Public Housing, School Performance

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