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University Funding Systems and their Impact on Research and Teaching: A General Framework

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  • John Beath

    ()
    (University of St Andrews)

  • Joanna Poyago-Theotoky

    ()
    (University of Loughborough)

  • David Ulph

    (Inland Revenue)

Abstract

This paper addresses the following question: how does a higher education funding system influence the trade-off that universities make between research and teaching? We do so by constructing a general model that allows universities to choose actively the quality of their teaching and research when faced with different funding systems. In particular, we derive the feasible sets that face universities under such systems and show how, as the parameters of the system are varied, the nature of the university system itself changes. The “culture” of the university system thus becomes endogenous. This makes the model useful for the analysis of reforms in funding and also for international comparisons.

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Bibliographic Info

Paper provided by Department of Economics, Loughborough University in its series Discussion Paper Series with number 2005_2.

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Date of creation: Apr 2005
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Handle: RePEc:lbo:lbowps:2005_2

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Keywords: University funding system; higher education; teaching quality; research quality; research elite.;

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References

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  1. 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).
  2. Kemnitz, Alexander, 2003. "Funding, Competition and Quality in Higher Education," Discussion Papers 610, Institut fuer Volkswirtschaftslehre und Statistik, Abteilung fuer Volkswirtschaftslehre.
  3. Charles T. Clotfelter, 1999. "The Familiar but Curious Economics of Higher Education: Introduction to a Symposium," Journal of Economic Perspectives, American Economic Association, vol. 13(1), pages 3-12, Winter.
  4. Chapman, B., 1996. "Conceptual Issues and the Australian Experience with Income Contingent Charges for Higher Education," CEPR Discussion Papers 350, Centre for Economic Policy Research, Research School of Economics, Australian National University.
  5. David Greenaway & Michelle Haynes, 2003. "Funding Higher Education in The UK: The Role of Fees and Loans," Economic Journal, Royal Economic Society, vol. 113(485), pages F150-F166, February.
  6. Garcia-Penalosa, Cecilia & Walde, Klaus, 2000. "Efficiency and Equity Effects of Subsidies to Higher Education," Oxford Economic Papers, Oxford University Press, vol. 52(4), pages 702-22, October.
  7. 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.
  8. 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.
  9. Robert J. Gary-Bobo & Alain Trannoy, 2004. "Efficient Tuition Fees, Examinations, and Subsidies (new title: Efficient tuition fees and subsidies)," CESifo Working Paper Series 1189, CESifo Group Munich.
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Cited by:
  1. Jellal, Mohamed, 2014. "Gouvernance optimale moderne des universités
    [Modern optimal governance of universities]
    ," MPRA Paper 57275, University Library of Munich, Germany.
  2. De Fraja, Gianni & Valbonesi, Paola, 2008. "The Design of the University System," CEPR Discussion Papers 7038, C.E.P.R. Discussion Papers.
  3. 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.
  4. Joan Rosselló, 2007. "Does a public university system avoid the stratification of public universities and the segregation of students?," DEA Working Papers 26, Universitat de les Illes Balears, Departament d'Economía Aplicada.
  5. Joan Rosselló, 2006. "¿Deberían tener las universidades total autonomía en la selección del profesorado?," DEA Working Papers 25, Universitat de les Illes Balears, Departament d'Economía Aplicada.

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