The state higher-education establishment and its lobbyists
argue that spending more tax dollars on their system will improve Michigan's economy.
Here is the abstract from the very latest
research on this issue, performed not by self-serving beneficiaries of government
spending, but by disinterested scholars:
Education Spending and State Economic Growth: Are All
Dollars Created Equal?
By John Deskins (Creighton University), Brian Hill
(Salisbury University) and Laura Ullrich (Winthrop University)
This article contributes to the literature on the effect of
state and local education spending on U.S. state economic growth by separately
analyzing higher and K-12 education spending and by taking into account the
possibility that education spending may generate spillover effects to
Results from a series of fixed-effects regressions using
a 1992-2002 panel of state-level data indicate that increased spending on
higher education generally exhibits a relatively large negative effect on
private sector employment or gross state product growth when the increase in
education spending is financed through own-source revenue. Results
do not identify a statistically significant relationship between K-12 education
spending and economic growth.
This finding is an important clarification in the literature
because an analysis of combined higher and K-12 education spending yields an
overall negative effect. Results do not provide consistent evidence of
cross-state spillover effects associated with either form of education
spending. (Emphasis added.)
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