Rg. Ehrenberg et al., INSTITUTIONAL RESPONSES TO INCREASED EXTERNAL SUPPORT FOR GRADUATE-STUDENTS, Review of economics and statistics, 75(4), 1993, pp. 671-682
This paper uses institutionally based data to estimate how universitie
s would respond to increased federal support for graduate students. It
demonstrates that doctorate-producing universities do respond to chan
ges in the number of full-time science and engineering students suppor
ted on external funds by altering the number of students that they sup
port on institutional funds. Institutional adjustment to changes in ex
ternal support levels appears to be quite rapid. However, in the aggre
gate, the magnitude of these responses is quite small.