The recent crackdown on federal spending has universities sweating despite the fact that many of them boast huge billion-dollar endowments. So what gives? Why would less money from the federal government be a cause for concern? Where does all that money go? And could there be more to this budget picture than meets the eye? In this episode, hosts and finance professors Jonathan Berk and Jules van Binsbergen delve into the inner workings of university endowments and how these institutions are balancing their budgets in a way that’s leaving themselves vulnerable to dire financial situations. Read John Cambell, Jeremy Stein, and Alex Wu’s paper, “Economic Budgeting for Endowment-Dependent Universities” here. Find All Else Equal on the web: https://lauder.wharton.upenn.edu/allelse/ All Else Equal: Making Better Decisions Podcast is a production of the UPenn Wharton Lauder Institute through University FM.