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Modeling the University Decision Process: The Effects of Faculty Participation in University Decision Making

  • Kathleen A. Carroll

    ()

    (UMBC)

  • Lisa M. Dickson

    ()

    (UMBC)

  • Jane E. Ruseski

    ()

    (University of Alberta)

This paper develops models of decision making in a university setting with and without faculty participation. The models predict values for the level of services or programs offered and the quality of those services in a university setting for either private nonprofit or public universities. These predictions indicate conditions under which outcomes are similar or differ with faculty participation in the decision process. The model predicts that without shared governance that universities may overinvest in non-academic quality (e.g. athletics, recreational activities). This would be exacerbated in for-profit forms of higher education. Notably, nonprofit and/or public institutions are not inefficient relative to for-profit institutions, which questions the rationale for subsidies to for-profit institutions. If academic quality provides positive externalities as has been suggested in the literature, then shared governance may be socially preferred to university decision making without faculty involvement.

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File URL: http://www.umbc.edu/economics/wpapers/wp_11_129.pdf
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Paper provided by UMBC Department of Economics in its series UMBC Economics Department Working Papers with number 11-129.

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Length: 38 pages
Date of creation: Jan 2011
Date of revision:
Handle: RePEc:umb:econwp:11129
Contact details of provider: Postal: UMBC Department of Economics 1000 Hilltop Circle Baltimore MD 21250, USA
Phone: 410-455-2160
Fax: 410-455-1054
Web page: http://www.umbc.edu/economics

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