University Endowment Growth: Assessing Policy Proposals

dc.contributor.authorMilton, Ross T.
dc.contributor.authorEhrenberg, Ronald G.
dc.date.accessioned2020-11-17T16:58:35Z
dc.date.available2020-11-17T16:58:35Z
dc.date.issued2014-09-01
dc.description.abstractThe growth of college and university endowments, particularly those of elite schools, have drawn the attention of policymakers and pundits. Using a decomposition of the growth of endowments between 1991 and 2010 we simulate the effects of three prominent proposed policies had they been implemented in 1991 on endowment payouts through 2010: (1) a minimum spending rule, (2) removing full income tax deductibility of donations, and (3) taxing total endowment sizes beyond a given size. We find that a minimum spending rule increases the average size of endowment payouts for all quartiles of the endowment distribution in nearly all years of the sample period and has a modestly larger relative impact on richer schools. Removing tax deductibility decreases endowment payouts with its effect increasing over time. It has a larger relative impact on schools with smaller endowments than on richer schools.
dc.description.legacydownloadsWP162.pdf: 13 downloads, before Oct. 1, 2020.
dc.identifier.other15842428
dc.identifier.urihttps://hdl.handle.net/1813/74803
dc.language.isoen_US
dc.rightsRequired Publisher Statement: Published by the Cornell Higher Education Research Institute, ILR School, Cornell University.
dc.subjecthigher education
dc.subjectendowments
dc.subjectdistribution
dc.titleUniversity Endowment Growth: Assessing Policy Proposals
dc.typearticle
local.authorAffiliationMilton, Ross T.: Cornell University
local.authorAffiliationEhrenberg, Ronald G.: rge2@cornell.edu Cornell University ILR School
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