University Funding Policies: Buildings or Citizens?
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.
|Date of creation:||Jan 2013|
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- 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).
- 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).
- 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.
- 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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