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Do places with "interesting geology" tend to have better-funded grad programs?

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It's an interesting question that applies specifically to grad programs here but not really in any other field

I think that it depends on what field you want to go into. Some friends of mine are trying to get into grad school for petrology/field/metamorphic and igenous geology, and the more interesting geology is out in the Rockies for that, and that is generally where the good programs are in those fields. The stuff that I am researching now, in paleo-oceanography, I don't think that it is specifically very localized. The field that I want to go into, most of the programs are in the northeast, not so much that they are in interesting areas, but because they are the best collections. As for geochemistry and geophysics, I guess it depends on what you want to focus for research.

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