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Fiscal decentralization and the performance of higher education institutions: the case of Europe

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  • Julien Jacqmin
  • Mathieu Lefebvre

Abstract

This paper empirically evaluates the impact of fiscal decentralization on the performance of higher education systems. To test this relationship,we build up a panel dataset composed of European countries. Countrylevel performance is measured by an indicator using data from the Shanghai ranking. Using a dynamic panel approach, we find that a higher share of government spending coming from decentralized levels of governmentsleads to an improvement of the performance of research-intensive higher education institutions. This result is confirmed by the use of an instrumental variable approach. We argue that a more decentralized higher education system increases the ability to attract and retain top scholars.

Suggested Citation

  • Julien Jacqmin & Mathieu Lefebvre, 2017. "Fiscal decentralization and the performance of higher education institutions: the case of Europe," Working Papers of BETA 2017-31, Bureau d'Economie Théorique et Appliquée, UDS, Strasbourg.
  • Handle: RePEc:ulp:sbbeta:2017-31
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    Cited by:

    1. Lin-Feng Yue & Jing-Ran Sun & Long-Jian Yang, 2022. "The impact of fiscal centralization policies on education expenditure among Chinese local governments," Quality & Quantity: International Journal of Methodology, Springer, vol. 56(4), pages 2281-2300, August.
    2. Yarong Liu & Xiang Yao & Yujie Xue, 2023. "A case study of decentralization reform in a Chinese university," Asia Europe Journal, Springer, vol. 21(2), pages 273-290, June.

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    More about this item

    Keywords

    fiscal decentralization; ranking; higher education institutions.;
    All these keywords.

    JEL classification:

    • I28 - Health, Education, and Welfare - - Education - - - Government Policy
    • H52 - Public Economics - - National Government Expenditures and Related Policies - - - Government Expenditures and Education
    • H75 - Public Economics - - State and Local Government; Intergovernmental Relations - - - State and Local Government: Health, Education, and Welfare

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