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Funding formulae where costs legitimately differ: the case of higher education in England

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Author Info
Geraint Johnes

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Abstract

The institutional framework for the funding of higher education in the UK is discussed. In England, much of the financial support for teaching and learning, especially of ‘home and EU’ undergraduates, is channelled through the Higher Education Funding Council for England (HEFCE). HEFCE operates a formula funding mechanism, though in the wake of recent policy reforms - which include the introduction of differential tuition fees - this is likely to change. Some simple economic models of funding mechanisms which may be suitable for application in this context are constructed and evaluated. Implications for the design of future policies are discussed.

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Paper provided by Lancaster University Management School, Economics Department in its series Working Papers with number 003053.

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Date of creation: 2005
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Handle: RePEc:lan:wpaper:003053

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Keywords: funding; education;

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References listed on IDEAS
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  1. Johnes, Geraint, 1997. "Costs and Industrial Structure in Contemporary British Higher Education," Economic Journal, Royal Economic Society, vol. 107(442), pages 727-37, May. [Downloadable!] (restricted)
  2. Glass, J C & McKillop, Donal G & Hyndman, N, 1995. "Efficiency in the Provision of University Teaching and Research: An Empirical Analysis of UK Universities," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 10(1), pages 61-72, Jan.-Marc. [Downloadable!] (restricted)
  3. Philip Andrew Stevens, 2005. "A Stochastic Frontier Analysis of English and Welsh Universities," Education Economics, Taylor and Francis Journals, vol. 13(4), pages 355-374, December. [Downloadable!] (restricted)
  4. Johnes, Geraint, 1996. "Multi-product Cost Functions and the Funding of Tuition in UK Universities," Applied Economics Letters, Taylor and Francis Journals, vol. 3(9), pages 557-61, September. [Downloadable!] (restricted)
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  5. Koshal, Rajindar K & Koshal, Manjulika, 1995. "Quality and Economies of Scale in Higher Education," Applied Economics, Taylor and Francis Journals, vol. 27(8), pages 773-78, August.
  6. Cohn, Elchanan & Rhine, Sherrie L W & Santos, Maria C, 1989. "Institutions of Higher Education as Multi-product Firms: Economies of Scale and Scope," The Review of Economics and Statistics, MIT Press, vol. 71(2), pages 284-90, May. [Downloadable!] (restricted)
  7. Geraint Johnes & Jill Johnes, 2005. "Higher education institutions' costs and efficiency: taking the decomposition a further step," Working Papers 003052, Lancaster University Management School, Economics Department. [Downloadable!]
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  8. Johnes, Geraint, 1998. "The Costs of Multi-product Organizations and the Heuristic Evaluation of Industrial Structure," Socio-Economic Planning Sciences, Elsevier, vol. 32(3), pages 199-209, September. [Downloadable!] (restricted)
  9. Izadi, Hooshang & Johnes, Geraint & Oskrochi, Reza & Crouchley, Robert, 2002. "Stochastic frontier estimation of a CES cost function: the case of higher education in Britain," Economics of Education Review, Elsevier, vol. 21(1), pages 63-71, February. [Downloadable!] (restricted)
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