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An ongoing study conducted by Research for Action, a Philadelphia-based nonprofit research organization, looked at the effect of performance-based funding policies in higher education across three states: Indiana, Ohio and Tennessee. The group released early results from the work over the weekend at the annual meeting of the American Education Research Association.
The project takes into account key differences in the type of policies as well as variations in state funding that were tied to them. Initial findings showed consistent positive effects on the numbers of bachelor's degrees awarded under the policies. But the study did not find evidence of a positive effect on graduation rates.
