Tuesday, January 30, 2007

The way to control prices is to increase demand? 

Just some more donkonomics.
Raising spending for the Pell program and for scientific research was among the top budget priorities announced by Democrats during and since their successful campaign last fall to take control of Congress. The Democrats said the federal government should increase aid to college students to help them cope with rising tuitions.
This is why we teach economics, to tell journalists like this one that it just ain't so.
Substituting grants for loans increased the likelihood of a low-income student actually starting college at the school by only 3 percentage points, and this number is not statistically significant. In the case of low-income minority students, the likelihood of entering this institution grew between 8 and 10 percentage points, with statistical significance at the 10 percent level.