University Funding Policies: Buildings or Citizens?
AbstractGovernments fund public universities based on the number of registered students and lump sum transfers. Such policy induces universities to compete for student recruitment. I show that such rule can lead to an inefficient allocation of resources in which universities compete for the same students. I suggest a more efficient policy that achieves the social optimum for any given level of funding. Such funding rule should not be solely based on university's own enrolement, but also on enrolment in competing universities.
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Bibliographic InfoPaper provided by Queen's University, Department of Economics in its series Working Papers with number 1302.
Length: 15 pages
Date of creation: Jan 2013
Date of revision:
University; Funding Rule; Funding Policies; Decentralized Decisions; Spending Efficiency;
Find related papers by JEL classification:
- H52 - Public Economics - - National Government Expenditures and Related Policies - - - Government Expenditures and Education
- I23 - Health, Education, and Welfare - - Education - - - Higher Education; Research Institutions
- I28 - Health, Education, and Welfare - - Education - - - Government Policy
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- Wilson, John Douglas, 1999. "Theories of Tax Competition," National Tax Journal, National Tax Association, vol. 52(n. 2), pages 269-304, June.
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