Testing Federal Student-Aid Fungibility in Two Competing Versions of Federalism.

Used 23 years of federal, state, and institutional student-aid data to investigate the effects of federal grants to students on the behavior of higher education institutions. Pell grants, exemplifying "redivision federalism," appear highly fungible and inversely related to institutional grants to students, while campus-based federal programs, exemplifying "cooperative federalism," appear less fungible and positively associated with institutional grants. (EV)