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Teaching versus research: A multi-tasking approach to multi-department universities

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  • Gautier, Axel
  • Wauthy, Xavier

Abstract

The budget of a university essentially depends on the number of students it enrols. In multi-department universities resources created in one department may be redistributed to other departments. This redistribution affects the way academics share their working time between research and teaching activities. Redistribution creates free-riding on teaching efforts. In this paper, we show that by designing internal financial rules which create yardstick competition for research funds, a multi-department university may induce better teaching quality and research, as compared to the performance of independent departments.

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Bibliographic Info

Article provided by Elsevier in its journal European Economic Review.

Volume (Year): 51 (2007)
Issue (Month): 2 (February)
Pages: 273-295

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Handle: RePEc:eee:eecrev:v:51:y:2007:i:2:p:273-295

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Web page: http://www.elsevier.com/locate/eer

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  1. Mathias Dewatripont & Ian Jewitt & Jean Tirole, 1999. "The economics of career concerns: part 1 :comparing information structures," ULB Institutional Repository 2013/9617, ULB -- Universite Libre de Bruxelles.
  2. Glenn MacDonald & Leslie M. Marx, 2001. "Adverse Specialization," Journal of Political Economy, University of Chicago Press, vol. 109(4), pages 864-899, August.
  3. De Fraja, Gianni & Iossa, Elisabetta, 2002. "Competition among Universities and the Emergence of the Elite Institution," Bulletin of Economic Research, Wiley Blackwell, vol. 54(3), pages 275-93, July.
  4. Beath, John & Owen, Robert F. & Poyago-Theotoky, Joanna & Ulph, David, 2003. "Optimal incentives for income-generation in universities: the rule of thumb for the Compton tax," International Journal of Industrial Organization, Elsevier, vol. 21(9), pages 1301-1322, November.
  5. Axel Gautier & Florian Heider, 2002. "The Benefit and Cost of Winner Picking: Redistribution Vs Incentives," Bonn Econ Discussion Papers bgse31_2002, University of Bonn, Germany.
  6. Holmstrom, Bengt & Milgrom, Paul, 1991. "Multitask Principal-Agent Analyses: Incentive Contracts, Asset Ownership, and Job Design," Journal of Law, Economics and Organization, Oxford University Press, vol. 7(0), pages 24-52, Special I.
  7. Mathias Dewatripont & Françoise Thys-Clément & Luc Wilkin, 2001. "The strategic analysis of universities: microeconomic and management perspectives," ULB Institutional Repository 2013/9553, ULB -- Universite Libre de Bruxelles.
  8. Thursby, Jerry G & Jensen, Richard & Thursby, Marie C, 2001. " Objectives, Characteristics and Outcomes of University Licensing: A Survey of Major U.S. Universities," The Journal of Technology Transfer, Springer, vol. 26(1-2), pages 59-72, January.
  9. DEL REY, Elena, . "Teaching versus research: a model of state university competition," CORE Discussion Papers RP -1501, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
  10. Caballero, R. & Galache, T. & Gomez, T. & Molina, J. & Torrico, A., 2001. "Efficient assignment of financial resources within a university system. Study of the University of Malaga," European Journal of Operational Research, Elsevier, vol. 133(2), pages 298-309, January.
  11. Dundar, Halil & Lewis, Darrell R., 1995. "Departmental productivity in American universities: Economies of scale and scope," Economics of Education Review, Elsevier, vol. 14(2), pages 119-144, June.
  12. J. Peter Neary & James A. Mirrlees & Jean Tirole, 2003. "Evaluating Economics Research in Europe: An Introduction," Journal of the European Economic Association, MIT Press, vol. 1(6), pages 1239-1249, December.
  13. Caballero, Rafael & Galache, Teodoro & Gomez, Trinidad & Molina, Julian & Torrico, Angel, 2004. "Budgetary allocations and efficiency in the human resources policy of a university following multiple criteria," Economics of Education Review, Elsevier, vol. 23(1), pages 67-74, February.
  14. Sandro Brusco & Fausto Panunzi, 2002. "Reallocation of Corporate Resources and Managerial Incentives in Internal Capital Markets," CESifo Working Paper Series 735, CESifo Group Munich.
  15. Jeremy C. Stein, 1995. "Internal Capital Markets and the Competition for Corporate Resources," NBER Working Papers 5101, National Bureau of Economic Research, Inc.
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Citations

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Cited by:
  1. Beath, John & Poyago-Theotoky, Joanna & Ulph, David, 2011. "University funding systems: impact on research and teaching," Economics Discussion Papers 2011-1, Kiel Institute for the World Economy.
  2. El Ouardighi, Fouad & Kogan, Konstantin & Vranceanu , Radu, 2013. "Publish or Teach ? : Analysis of the Professor's Optimal Career Plan," ESSEC Working Papers WP1307, ESSEC Research Center, ESSEC Business School.
  3. Lisa Grazzini & Annalisa Luporini & Alessandro Petretto, 2011. "Competition between State Universities," CESifo Working Paper Series 3373, CESifo Group Munich.
  4. CESI, Berardino & PAOLINI, dimitri, 2012. "Peer group and distance: when widening university participation is better," CORE Discussion Papers 2012042, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
  5. Marisa Hidalgo Hidalgo & Guadalupe Valera Blanes, 2013. "University merging process," Working Papers. Serie AD 2013-01, Instituto Valenciano de Investigaciones Económicas, S.A. (Ivie).
  6. Gebhard Kirchgässner, 2011. "Kaderschmieden der Wirtschaft und/oder Universitäten? Der Auftrag der Wirtschaftsuniversitäten und –fakultäten im 21. Jahrhundert," Perspektiven der Wirtschaftspolitik, Verein für Socialpolitik, vol. 12(3), pages 317-337, 08.
  7. de, Vries Frans & Franckx, Laurent, 2012. "A Note on Organizational Design and the Optimal Allocation of Environmental Liability," Stirling Economics Discussion Papers 2012-09, University of Stirling, Division of Economics.
  8. Cynthia L. Harter & William E. Becker & Michael Watts, 2011. "Time Allocations and Reward Structures for US Academic Economists from 1955–2005: Evidence from Three National Surveys," International Review of Economic Education, Economics Network, University of Bristol, vol. 10(2), pages 6-27.

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