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University Merging Process: A Guideline Proposal for Excellence-Enhancing

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  • Hidalgo-Hidalgo Marisa

    (Departamento de Economía, Métodos Cuantitativos e Historia Económica, Universidad Pablo de Olavide, Ctra de Utrera Km.1, E-41013, Sevilla, Spain)

  • Valera Guadalupe

    (Departamento de Economía, Métodos Cuantitativos e Historia Económica, Universidad Pablo de Olavide, Ctra de Utrera Km.1, E-41013, Sevilla, Spain)

Abstract

There is a recent trend toward encouraging universities to merge. This policy is based on the idea that mergers create synergy gains that enhance the prestige of universities by increasing their international visibility. However, this process may reduce competition for both research funds and professors in national higher education markets. This paper analyzes whether mergers among universities are optimal from an excellence perspective. We find that as the heterogeneity between the initial reputations of potentially merging institutions increases, the amount of funds required for mergers to achieve higher excellence than competition also increases.

Suggested Citation

  • Hidalgo-Hidalgo Marisa & Valera Guadalupe, 2016. "University Merging Process: A Guideline Proposal for Excellence-Enhancing," The B.E. Journal of Economic Analysis & Policy, De Gruyter, vol. 16(3), pages 1359-1386, September.
    • Handle: RePEc:bpj:bejeap:v:16:y:2016:i:3:p:1359-1386:n:9
    DOI: 10.1515/bejeap-2015-0237
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    More about this item

    Keywords

    higher education; economics of science; university competition; university mergers;
    All these keywords.

    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
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity

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