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Does Decentralization in the Provision of Higher Education Increase Quality of Education?

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  • Joan Roselló Villalonga

    (Universitat Illes Balears)

Abstract

In this paper we analyze to what extent devolution of responsibilities in higher education to subnational levels of government affects quality of higher education. We isolate the effects on quality of education due to the type of regime of provision of public goods from those due to mobility restrictions. Our results suggest that average quality of education might be higher in a decentralized regime compared to a centralized provision, under the assumption of student mobility restrictions, since decentralized provision would allow all students with high academic performance to access higher education. In case that public expenditure in higher education by regional governments was larger to that of a central government, the previous result would be reinforced. However, this comparison is undetermined as far as the central government decided to provide higher education in each region, which would occur if fixed costs were small and if the impact on quality of education of those students that would then have access to higher education was large.

Suggested Citation

  • Joan Roselló Villalonga, 2017. "Does Decentralization in the Provision of Higher Education Increase Quality of Education?," Hacienda Pública Española / Review of Public Economics, IEF, vol. 220(1), pages 13-55, March.
    • Handle: RePEc:hpe:journl:y:2017:v:220:i:1:p:13-55
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    References listed on IDEAS

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    Cited by:

    1. Kolpin, Van & Stater, Mark, 2024. "The perverse equilibrium effects of state and federal student aid in higher education," Journal of Economic Behavior & Organization, Elsevier, vol. 217(C), pages 679-691.
    2. Luis Alejandro López-Agudo & Óscar D. Marcenaro Gutiérrez, 2019. "The Effect of Weekly Instruction Time on Academic Achievement: The Spanish Case," Hacienda Pública Española / Review of Public Economics, IEF, vol. 230(3), pages 63-93, September.

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    More about this item

    Keywords

    School choice; State and federal aid; Decentralization; Quality of higher education.;
    All these keywords.

    JEL classification:

    • H42 - Public Economics - - Publicly Provided Goods - - - Publicly Provided Private Goods
    • I28 - Health, Education, and Welfare - - Education - - - Government Policy

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