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University Funding Policies: Buildings or Citizens?

Author

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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.

Suggested Citation

  • Pier-Andre Bouchard St-Amant, 2013. "University Funding Policies: Buildings or Citizens?," Working Papers 1302, Queen's University, Department of Economics.
  • Handle: RePEc:qed:wpaper:1302
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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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    References listed on IDEAS

    as
    1. 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.
    2. Robert Gary-Bobo & Alain Trannoy, 1998. "L'économique politique simplifiée du « mammouth »," Revue Française d'Économie, Programme National Persée, vol. 13(3), pages 85-126.
    3. Wilson, John Douglas, 1999. "Theories of Tax Competition," National Tax Journal, National Tax Association;National Tax Journal, vol. 52(2), pages 269-304, June.
    4. Wilson, John Douglas, 1999. "Theories of Tax Competition," National Tax Journal, National Tax Association, vol. 52(n. 2), pages 269-304, June.
    Full references (including those not matched with items on IDEAS)

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    Cited by:

    1. Verbitskiy, Andrey & Fridman, Alla, 2014. "Competition between universities and government regulation," Economic Policy, Russian Presidential Academy of National Economy and Public Administration, pages 137-160, December.

    More about this item

    Keywords

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

    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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