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Concerns regarding the state of higher education (access and participation, affordability and funding) have led to increased demands for accountability and effectiveness in meeting national and state higher education goals. One of the challenges in increasing US higher education productivity is identifying possible state policy levers and strategies that may be used to increase the production of undergraduate degrees. The purpose of our paper is to examine how public and private institutions contribute to growth in the state production of undergraduate degrees over an 11-year period (1996-2007) using data from the Integrated Postsecondary Education System (IPEDS).