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Impact Of Romanian Higher Education Funding Policy On University Efficiency

Author

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  • CRETAN Georgiana Camelia

    (Strada Mihail Moxa nr. 5-7, cam 3108, sector 1, Bucuresti, Strada Mihail Moxa nr. 5-7, cam 3108, sector 1, Bucuresti)

Abstract

The issues of higher education funding policy and university operating efficiency are hot points on the actual public agenda worldwide as the pressures exercised upon the public resources increased, especially in the aftermath of the last economic crisis. Concerned with the improvement of the funding mechanism through which government allocates the public funds in order to meet the national core objectives within the area of higher education, the policy makers adjusted the funding policy by diversifying the criteria used in distributing the funds to public universities. Thus, the aim of this research is to underline both the impact and the consequences the public funding patterns of higher education have on the relative efficiency of public funded higher education institutions, across time. Moreover, the research conducted aims to determine whether the changes occurred within the Romanian public funding methodology of higher education institutions improved the relative efficiency scores of public funded universities, before and after the economic crisis of 2008. Thus, on one hand we have underlined the changes brought to the Romanian public funding mechanism of higher education during the years of 2007, 2009 and 2010 compared to the year of 2006, using the content analysis, and on the other hand we assessed and compared the relative efficiency scores of each selected public funded university using a multiple input - multiple output linear programming model, by employing the Data Envelopment Analysis technique. The findings of the research undertaken emphasized that a more performance oriented funding mechanism improves the efficiency scores of public universities. The results of the research undertaken could be used either by the policy makers within the area of higher education or by the administrative management of public universities in order to correlate the funding with the results obtained and/or the objectives assumed by both the government and the higher education institution as well as to optimize the public funding policy designed according to the degree of efficiency each university accomplishes in using the allocated funds.

Suggested Citation

  • CRETAN Georgiana Camelia, 2015. "Impact Of Romanian Higher Education Funding Policy On University Efficiency," Annals of Faculty of Economics, University of Oradea, Faculty of Economics, vol. 1(1), pages 724-732, July.
    • Handle: RePEc:ora:journl:v:1:y:2015:i:1:p:724-732
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    File URL: http://anale.steconomiceuoradea.ro/volume/2015/n1/082.pdf
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    References listed on IDEAS

    as
    1. Simona VASILACHE & József TEMESI & Alina Mihaela DIMA, 2012. "Higher education reforms in Eastern Europe. A Hungarian-Romanian case study," Management & Marketing, Economic Publishing House, vol. 7(2), Summer.
    2. Charnes, A. & Cooper, W. W. & Rhodes, E., 1978. "Measuring the efficiency of decision making units," European Journal of Operational Research, Elsevier, vol. 2(6), pages 429-444, November.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    public funding policy; efficiency; higher education; performance funding; input-output model; Data Envelopment Analysis;
    All these keywords.

    JEL classification:

    • C67 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Input-Output Models
    • I23 - Health, Education, and Welfare - - Education - - - Higher Education; Research Institutions
    • I22 - Health, Education, and Welfare - - Education - - - Educational Finance; Financial Aid
    • I28 - Health, Education, and Welfare - - Education - - - Government Policy
    • J18 - Labor and Demographic Economics - - Demographic Economics - - - Public Policy

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