Taxpayers are asking some reasonable questions about what they are actually funding at public universities. Tomorrow, I will attend a UCLA men’s basketball home game. I thank the taxpayers for subsidizing the game ball. The professors hope that the good times will continue. Some evidence documenting our social benefits might help our cause. The Chronicle of Higher Education offers a clear case study of North Carolina’s Research Triangle . Sweden also offers a neat natural experiment. John Quigley and co-authors document that universities offer significant local spillover benefits. Universities also may solve a Schelling co-ordination problem. The educated want to live near each other. Knowing that graduates live near excellent universities after planting roots, other graduates may agglomerate there. Firms who seek out skilled workers will also locate there and the city flourishes. Enrico Moretti documents that wages are higher in cities with high levels of average “human capital”. This is likely to be due to learning and external productivity effects.