NATIONAL BUREAU OF ECONOMIC RESEARCH
NATIONAL BUREAU OF ECONOMIC RESEARCH
loading...

What Do University Endowment Managers Worry About? An Analysis of Alternative Asset Investments and Background Income

Harvey S. Rosen, Alexander J. W. Sappington

NBER Working Paper No. 21271
Issued in June 2015
NBER Program(s):Economics of Education, Public Economics

This paper examines whether university endowment managers think only in terms of the assets they manage, or also take into account background income, the other flows of income to the university. Specifically, we test whether the level and variability of a university’s background income (e.g., from tuition and government grants) affect its endowment’s allocations to so-called alternative assets such as hedge funds, private equity, and venture capital. We find that both the probability of investing in alternative assets and the proportion of the portfolio invested in such assets increase with expected background income and decrease with its variability.

download in pdf format
   (514 K)

email paper

Machine-readable bibliographic record - MARC, RIS, BibTeX

Document Object Identifier (DOI): 10.3386/w21271

Published: Harvey S. Rosen & Alexander J. W. Sappington, 2016. "What Do University Endowment Managers Worry About? An Analysis of Alternative Asset Investments and Background Income," Education Finance and Policy, vol 11(4), pages 404-425.

Users who downloaded this paper also downloaded* these:
Aruoba and Fernández-Villaverde w20263 A Comparison of Programming Languages in Economics
Edmans and Gabaix w21131 Executive Compensation: A Modern Primer
Carlson, Kim, Lusardi, and Camerer w21085 Bankruptcy Rates among NFL Players with Short-Lived Income Spikes
Gorry, Gorry, and Slavov w21326 Does Retirement Improve Health and Life Satisfaction?
Choi w21467 Contributions to Defined Contribution Pension Plans
 
Publications
Activities
Meetings
NBER Videos
Themes
Data
People
About

National Bureau of Economic Research, 1050 Massachusetts Ave., Cambridge, MA 02138; 617-868-3900; email: info@nber.org

Contact Us