| Abstract: | This paper is a summary of a study of the marginal costs of graduate instruction in a large public research university, and draws implications for financing foreign enrollments. The major finding is that because the teaching costs directly facing faculty differ from their budgetary rewards for instruction, faculty have the means to support basic research and to give aid to the most desired students, including foreigners. We also found that faculty members' marginal costs of classroom instruction are generally low. While advising is costly, it has offsetting benefits, especially in the laboratory sciences. The costs of instructing and advising foreign and domestic students are equal. |
