But the available research suggests that if state lawmakers increased appropriations for public colleges and universities, it would be unlikely to have an effec

But the available research suggests that if state lawmakers increased appropriations for public colleges and universities, it would be unlikely to have an effect as large as advocates assume. More state funding appears to buy pennies on the dollar in lower tuition. That makes increasing appropriations for public colleges and universities an ineffective—even wasteful—policy for keeping tuition low. It also implies that grant aid might deliver more bang for the buck than larger state appropriations. What might explain why appropriations have such weak effect on tuition? Again, the studies discussed above do not offer much explanation, but two theories come to mind: perhaps universities look to exploit their pricing power in the market leading them to raise tuition whether appropriations rise or fall; or maybe when faced with a reduction in state funding, universities cut spending instead of raising tuition dollar for dollar. Those are excellent theories for future research to test. To be sure, the research on the effects of state disinvestment is severely limited, and further work may yet find a stronger effect on tuition. But limitations are not a reason to continue assuming the effects are as large as many have claimed. Just the opposite. The fact that the research is limited, and that it shows state disinvestment is not a major cause of rising tuition, are reasons to doubt the state disinvestment argument and the policy agenda attached to it. Researchers should see this as a call to action. They should be putting at least as much effort into measuring the effects of state appropriations on tuition as they do the Bennett Hypothesis—and employing the same rigorous analytical methods. They can also help determine what factors really are the primary drivers of tuition increases at public colleges if appropriations matter so little. Journalists should also change their approach in light of the evidence on state disinvestment. They should hold claims about the effects of state disinvestment on tuition to the same standards of evidence as they do claims about the Bennett Hypothesis. Meanwhile, it is time to start calling the claim that state funding cuts are the primary driver of rising tuition what it really is: the state disinvestment hypothesis. https://www.brookings.edu/research/the-disinvestment-hypothesis-dont-blame-state-budget-cuts-for-rising-tuition-at-public-universities/ https://www.brookings.edu/research/the-disinvestment-hypothe...