Competition is a core feature of science and has for some time also been viewed by institutions in the higher education sector, as well as the state, as an incentive to produce scientific output. Due to scarce financial resources third-party funding plays an increasingly important role. However,...

Canada's universities each receive an annual operating grant from their provincial government to partially finance operating expenses. This paper estimates the sensitivity of provincial operating grants to the business cycle by disentangling the effects of procyclical income on government...