Introducing Bennett Hypothesis 2.0

A modified version of the idea that federal subsidies inflate college costs better fits the available data, concludes Andrew Gillen in a Center for College Affordability and Productivity economic analysis. His analysis takes into account three refinements: universal aid is far more bloating than aid aimed at poor students; selectivity, tuition caps, and price discrimination complicate evaluations; and take into account changes over time. To address rapidly rising higher education costs, the public needs to know more about university outputs so schools begin to compete on value, not prestige, and limit any government subsidies strictly to the poorest students.