This dissertation examines performance-based funding policies in higher education. Performance-based funding policies allocate state funding via student outcomes instead of by student enrollments. The first paper in this dissertation provides an in-depth analysis of Ohio's performance-based funding policy for two-year institutions. Then, the second paper empirically evaluates the effect of Ohio's performance-based funding on associate degree and certificate production using a difference-in-differences with propensity score matching technique. The third and final paper investigates the effect of performance-based funding policies across the nation on the level of faculty staff at four-year and two-year institutions. [The dissertation citations contained here are published with the permission of ProQuest LLC. Further reproduction is prohibited without permission. Copies of dissertations may be obtained by Telephone (800) 1-800-521-0600. Web page: http://www.proquest.com.bibliotheek.ehb.be/en-US/products/dissertations/individuals.shtml.]