Issues concerning higher education today (e.g., rising costs, declining public trust, changing state economics) have created new demands for postsecondary institutions to demonstrate their productivity. We examine whether differences in states’ political cultures (i.e., underlying traditions, values, and public policy choices) are reflected in variability between state finance policy indicators and institutional variables that explain undergraduate graduation rates. To test our proposed model, we use longitudinal data on state indicators and institutional variables that explain differences in graduation rates compiled over an 11-year period. Our findings suggest that differences in political culture represent mediating factors between states’ economic contexts and higher education appropriations, which help explain variation in their graduation rates over time.
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