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University Funding Policies: Buildings or Citizens?

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  • Pier-Andre Bouchard St-Amant

    ()
    (Queen's University)

Abstract

Governments 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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File URL: http://qed.econ.queensu.ca/working_papers/papers/qed_wp_1302.pdf
File Function: First version 2013
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Bibliographic Info

Paper provided by Queen's University, Department of Economics in its series Working Papers with number 1302.

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Length: 15 pages
Date of creation: Jan 2013
Date of revision:
Handle: RePEc:qed:wpaper:1302

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Related research

Keywords: University; Funding Rule; Funding Policies; Decentralized Decisions; Spending Efficiency;

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  1. 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.
  2. 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).
  3. 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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