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The basic idea of the Bennett Hypothesis is that federal subsidized loans cause tuition to increase, but the evidence supporting this hypothesis is ambiguous at best. In 2013, the Wall Street Journal brought together three economists to voice their ideas on rising tuition costs. While they disagreed about the exact relationship between federal aid and […]

Are investment tax credits helping entrepreneurs? Kauffman researcher Chris Jackson examines how current tax policy doesn’t really align with the type of support young and innovative companies need from policymakers.

In 1987, then-Secretary of Education William Bennett wrote an op-ed in the New York Times called “Our Greedy Colleges.” In his article, Bennett focused on the increasing cost of attending college and lackluster outcomes. One sentence in particular caught readers’ eyes and has since been dubbed the Bennett Hypothesis: “Increases in financial aid in recent […]

Incubators are often thought of by public officials as a helpful way to encourage startups and emerging entrepreneurs. But are they effective? After examining more than 35 academic articles, including a review paper that systematically examined 38 studies, key takeaways from the literature show that incubators might not prove more effective at creating successful businesses […]

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