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Blog of Tyler Cowen and Alex Tabarrok, both of whom teach at George Mason University.
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Are universities running down their endowments?

2026-03-04 15:48:36

US university endowments have recorded their fastest spending growth since the global financial crisis as federal funding cuts and rising operating costs squeeze campus budgets.

A study of 657 institutions by the National Association of College and University Business Officers (Nacubo) with Commonfund showed their endowment withdrawals rose 11 per cent year on year in the 12 months to June 2025 — the sharpest increase since 2010.

The surge came as endowments funded an average of 15.2 per cent of universities’ operating expenses last year, up from 10.9 per cent in 2023.

Here is more from Sun Yu at the FT.

The post Are universities running down their endowments? appeared first on Marginal REVOLUTION.

The value of good high schools

2026-03-04 13:10:17

Improving education and labor market outcomes for low-income students is critical for advancing socioeconomic mobility in the United States. We use longitudinal data on five cohorts of 9th grade students to explore how Massachusetts public high schools affect the longer-term outcomes of students, with a special focus on students from low-income families. Using detailed administrative and student survey data, we estimate school value-added impacts on college outcomes and earnings. Observationally similar students who attend a school at the 80th percentile of the value-added distribution instead of a school at the 20th percentile are 11% more likely to enroll in college, are 31% more likely to graduate from a four-year college, and earn 25% (or $10,500) more annually at age 30. On average, schools that improve students’ longer-run outcomes the most are those that improve their 10th grade test scores and increase their college plans the most.

That is from a new NBER working paper by Preeya P. Mbekeani, John P. Papay, Ann Mantil & Richard J. Murnane.

The post The value of good high schools appeared first on Marginal REVOLUTION.

A simple model of AI governance

2026-03-04 03:25:39

I trust private companies with strong AI more than I trust the government, regardless of which administration is in power.  Yet if the federal government feels it has no say or no control, it will lunge and take over the whole thing.  We thus want sustainble methods of perpetual interference that a) are actually somewhat useful from a safety perspective, and b) give governments some control, and the feeling of control, but not too much control.

You should judge AI-related events within this framework.

The post A simple model of AI governance appeared first on Marginal REVOLUTION.

Tuesday assorted links

2026-03-04 00:52:34

1. Legal basis for the Pentagon’s designation?

2. Cowen’s Third Law.

3. “But what is true is that this should not be much of a surprise considering the constant rhetoric over the past few years has been that AI is a power like no other. It’s like nukes, but times a thousand. We need regulation. And when an industry repeatedly calls out for oversight, asking for someone to make the rules on how it should be used, you cannot be surprised when the Defense department take that seriously. You cannot be surprised when they make up their own interpretations of what ought to be done, because you were insufficiently prescriptive. They will listen to your articulation of any red lines and wonder, what do you mean you want to tell me how to use the mega-nuke-crazy-power that you yourself are saying you don’t know how to control?”  Rohit.

4. There are too many types of shower controls.

5. The Anthropic valuation seems pretty stable.  Plus other matters of interest from SSC, including an idea for how to improve prediction markets by inducing the sports betting to subsidize participation in other contracts.

6. You can now bet on German train delays.

7. Rohit: “OpenAI now is also the only case I know of a defense department vendor contract being negotiated in public iteratively. With plenty of object lessons on why nobody does it.”  People, there is nothing weird going on here.  It is fine to dislike various aspects of the U.S. military, after all part of their business is to kill people.  But any blame you wish to levy goes toward “the system,” do not overly spin the narrative here.

The post Tuesday assorted links appeared first on Marginal REVOLUTION.