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.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
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 and Research Institutions
- I28 - Health, Education, and Welfare - - Education - - - Government Policy
This paper has been announced in the following NEP Reports:
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Alain Trannoy & Robert Gary-Bobo, 1998. "L'économique politique simplifiée du « mammouth »," Revue Française d'Économie, Programme National Persée, vol. 13(3), pages 85-126.
- Rey, Elena Del, 2001.
"Teaching versus Research: A Model of State University Competition,"
Journal of Urban Economics,
Elsevier, vol. 49(2), pages 356-373, March.
- DEL REY, Elena, 2000. "Teaching versus research: a model of state university competition," CORE Discussion Papers 2000030, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
- Wilson, John Douglas, 1999. "Theories of Tax Competition," National Tax Journal, National Tax Association, vol. 52(n. 2), pages 269-304, June Cita.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Mark Babcock).
If references are entirely missing, you can add them using this form.