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Is Privatization Necessary to achieve Quality of Universities?


  • Brezis, Elise S.


The purpose of this study is to analyze the relationship between privatization in higher education and the quality of universities. An interesting fact is that of the top 10 universities in the US, nine are private. Previous studies have claimed that there is a relationship between the privatization of universities and their quality, since countries with a high proportion of private resources have superior universities. The purpose of this paper is to analyze if indeed this supposed relationship is due to empirical regularities between quality and ownership, or whether the two are unrelated. The analysis presented herein is based on data collected on 508 universities in 40 countries. I show that flexibility is the important element affecting quality, and not ownership per se.

Suggested Citation

  • Brezis, Elise S., 2008. "Is Privatization Necessary to achieve Quality of Universities?," MPRA Paper 12485, University Library of Munich, Germany.
  • Handle: RePEc:pra:mprapa:12485

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    References listed on IDEAS

    1. Philippe Aghion & Mathias Dewatripont & Jeremy C. Stein, 2008. "Academic freedom, private-sector focus, and the process of innovation," RAND Journal of Economics, RAND Corporation, vol. 39(3), pages 617-635.
    2. Card, David & Krueger, Alan B, 1992. "Does School Quality Matter? Returns to Education and the Characteristics of Public Schools in the United States," Journal of Political Economy, University of Chicago Press, vol. 100(1), pages 1-40, February.
    3. Dominic J. Brewer & Eric Eide & Ronald G. Ehrenberg, 1996. "Does It Pay To Attend An Elite Private College? Cross Cohort Evidence on the Effects of College Quality on Earnings," NBER Working Papers 5613, National Bureau of Economic Research, Inc.
    4. George Psacharopoulos, 2003. "The Social Cost of an Outdated Law: Article 16 of the Greek Constitution," European Journal of Law and Economics, Springer, vol. 16(2), pages 123-137, September.
    5. Elise S. Brezis & François Crouzet, 2004. "The Role of Higher Education Institutions: Recruitment of Elites and Economic Growth," CESifo Working Paper Series 1360, CESifo Group Munich.
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    More about this item


    Higher Education; quality; privatization; ranking;

    JEL classification:

    • I23 - Health, Education, and Welfare - - Education - - - Higher Education; Research Institutions
    • I28 - Health, Education, and Welfare - - Education - - - Government Policy

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