The purpose of this research is to identify and analyze the factors that have an impact on implementation and effectiveness of intergovernmental grant programs at the granteelevel to enable grantors to better select, control and learn from their grantees. Data are collected via both annual and final performance reports, as well as an on-line survey from 1997 cohort U.S. Department of Education Graduate Assistance in Areas of National Need Fellowship grantees. A model is developed to assess the extent to which grantee capacity has an impact on implementation quality, and the extent to which grantee capacity and implementation quality taken separately have an impact on effectiveness. Grantee capacity consists of the following dimensions: human resources, size of graduate program, organizational level, and capacity to cope with Federal constraints. Implementation quality consists of two dimensions: regulatory conformity and innovativeness. Effectiveness consists of three dimensions: retention, candidacy rate and diversity. Using multiple regression analysis, the findings indicate that when controlling for the other variables in the model, organizational level has the strongest positive relationship, and number of personnel the strongest negative relationship with regulatory conformity. Both variables have th
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