Economics
ECN 236 PSU Making College More Affordable Case Study

ECN 236

Pennsylvania State University - Penn State Main Campus

ECN

Question Description

I’m studying for my Economics class and don’t understand how to answer this. Can you help me study?

Please follow the instruction in the doc attached and finish question 1 and 2. Each question should be roughly 500 words. I need to turn it in by noon on March 27th US Eastern time.

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Name: Date/Time started: Date/Time finished: ECN 236: The Economics of Higher Education Spring 2020 Midterm Exam Professor Griffith Rules: 1. You have 48 hours from when you pick up this exam (please request it by email when you are ready to start taking it) to answer the questions and submit a google doc on Google Classroom. (Please fill in time started and completed at the top). 2. You may use whatever literary or data sources you need to answer the questions. If you cite anything in particular, list the author and date of the article you are citing (you do not need a list of references unless they are papers we have not discussed in class this semester – I know which papers we covered). 3. Be sure to answer your questions as an economist, using findings from the research to make positive statements, rather than normative comments based on your own experiences. 4. I do not intend this to take you more than 4 hours to write up your answers. 5. You must work alone. You are not allowed to discuss the questions or your answers with any of your classmates (or anyone else for that matter). Questions: 1. Compare and contrast the following three proposals for making college “more affordable.” Be sure to discuss any changes in incentives, costs, benefits, and unintended consequences associated with each. Then pick one as your “preferred policy” and briefly argue why. Assume that the starting point counterfactual is a system that guarantees financial aid based on family income, which consists of some % grant aid, and some % Federal loans, and those with higher family incomes will not be considered for aid. a. Free College (4-yr and 2-yr) at public institutions for all students. This means that all tuition and fees are covered for all students, regardless of income and ability. b. Free College (4-yr and 2-yr) at public institutions with a family-income cap (that is higher for 4-yr students). This means that all tuition and fees are covered at 2yr institutions for all students up to a certain family income of $X and all tuition and fees are covered at 4-yr institutions up to a certain family income of $Y where Y>X. c. Free College (4-yr and 2-yr) at public institutions for those with HSGPA>X or SAT/ACT> Y where X and Y are separate cut-offs for each ability measure and one must score above at least one of these cut-offs to qualify. X and Y can vary depending on 2-yr vs. 4-yr attendance. 2. Suppose you are a consultant for the administration of a large public four-year research university that is ranked #40 by US News & World Report. You have been hired to 1 increase the quality of the university, while maintaining accessibility to in-state students. Please discuss your proposal(s), as well as any unintended consequences that may occur, any costs, and any potential downsides. Please use citations to back-up your proposal(s). 3. Write a brief summary (one paragraph) of any one of the white paper presentations other than your own. 2 ...
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Final Answer

Attached.

Running Head: UNIVERSITY PROPOSAL

1

Increasing the quality of a four-year research university
Name:
Institution:

UNIVERSITY PROPOSAL

2

Increasing the quality of a four-year research university
There has been an increasingly rising number of university graduates over time, and this
has greatly portended to the federal government that has long worked to better university
enrolments. The universities are slowly turning to stations producing masses of people with
valueless papers in the name of certificates. This has led to the poor ranking of our universities.
Research universities ought to be at the forefront of ensuring the quality of university education
is not compromised. It is out of these research institutions that we find solutions to different
problems both in the public and private sectors. Our purported world-class research center has
recently received a very low ranking, and rightfully so, owing to our laxity in the services we
provide. It is high time that we relook at our operations and make decided efforts to give back
our institution the glory it deserves. As a consultant, I will propose a redirection of the...

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