IDEAS home Printed from https://ideas.repec.org/a/taf/edecon/v16y2008i3p245-260.html
   My bibliography  Save this article

Funding universities for efficiency and equity: research findings versus petty politics

Author

Listed:
  • George Psacharopoulos

Abstract

The present paper starts by discussing the principles of public funding of universities. The size of the social returns to investment in education gives an indication regarding the most efficient use of resources, while the difference between the private and the social rates relates to issues of equity. The available evidence is contrasted to higher education funding policies in several countries. It is concluded that there is a divide between the research findings regarding efficient and equitable financing, and the actual public funding of universities. The reasons for this divide are discussed in the context of political economy, rent-seeking by several stakeholders and, above all, vote-seeking by politicians.

Suggested Citation

  • George Psacharopoulos, 2008. "Funding universities for efficiency and equity: research findings versus petty politics," Education Economics, Taylor & Francis Journals, vol. 16(3), pages 245-260.
    • Handle: RePEc:taf:edecon:v:16:y:2008:i:3:p:245-260
    DOI: 10.1080/09645290802338078
    as

    Download full text from publisher

    File URL: http://www.tandfonline.com/10.1080/09645290802338078
    Download Restriction: Access to full text is restricted to subscribers.
    File URL: https://libkey.io/10.1080/09645290802338078?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Chapman, Bruce, 2006. "Income Contingent Loans for Higher Education: International Reforms," Handbook of the Economics of Education, in: Erik Hanushek & F. Welch (ed.), Handbook of the Economics of Education, edition 1, volume 2, chapter 25, pages 1435-1503, Elsevier.
    2. Heckman, James J. & Masterov, Dimitriy V., 2004. "Skill Policies for Scotland," IZA Discussion Papers 1444, Institute of Labor Economics (IZA).
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Józef Dziechciarz, 2015. "Measurement of Rate of Return in Education. Research Directions," Proceedings of FIKUSZ 2015, in: Jolán Velencei (ed.),Proceedings of FIKUSZ '15, pages 39-56, Óbuda University, Keleti Faculty of Business and Management.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Arnaud Chevalier & Colm Harmon & Vincent O’ Sullivan & Ian Walker, 2013. "The impact of parental income and education on the schooling of their children," IZA Journal of Labor Economics, Springer;Forschungsinstitut zur Zukunft der Arbeit GmbH (IZA), vol. 2(1), pages 1-22, December.
    2. Elena Del Rey, 2009. "Can State University Fees Increase Welfare? A Mixed Oligopoly Approach," Journal of Institutional and Theoretical Economics (JITE), Mohr Siebeck, Tübingen, vol. 165(4), pages 670-683, December.
    3. Chapman, Bruce & Doris, Aedín, 2019. "Modelling higher education financing reform for Ireland," Economics of Education Review, Elsevier, vol. 71(C), pages 109-119.
    4. Hatsor, Limor, 2021. "Higher education funding: The value of information," MPRA Paper 122617, University Library of Munich, Germany.
    5. Camilo Andrés Garzón-Correa & Atilio Bustos-González & Melisa López-Hernández & Eduardo Calderón & Oscar Cespedes, 2022. "Challenges and Difficulties in Implementing an Income-Contingent-Financing Model in Higher Education in Colombia," Sustainability, MDPI, vol. 14(13), pages 1-14, July.
    6. Wolfram F. Richter & Berthold U. Wigger, 2012. "Besteuerung des Humanvermögens," Perspektiven der Wirtschaftspolitik, Verein für Socialpolitik, vol. 13(1-2), pages 82-102, February.
    7. Chapman, Bruce & Lounkaew, Kiatanantha, 2010. "Income contingent student loans for Thailand: Alternatives compared," Economics of Education Review, Elsevier, vol. 29(5), pages 695-709, October.
    8. Christian Andersson & Per Johansson, 2013. "Social stratification and out-of-school learning," Journal of the Royal Statistical Society Series A, Royal Statistical Society, vol. 176(3), pages 679-701, June.
    9. Rossana Patrón, 2009. "Can more education be bad? Some simple analytics on financing education," Documentos de Trabajo (working papers) 1709, Department of Economics - dECON.
    10. Lutz Hendricks & Oksana Leukhina, 2017. "How Risky is College Investment?," Review of Economic Dynamics, Elsevier for the Society for Economic Dynamics, vol. 26, pages 140-163, October.
    11. Hügle, Dominik, 2021. "The decision to enrol in higher education," Discussion Papers 2021/8, Free University Berlin, School of Business & Economics.
    12. Pierre Courtioux & Stéphane Gregoir & Dede Houeto, 2009. "The Simulation of the Educational Output over the Life Course: The GAMEO Model," Post-Print hal-00391393, HAL.
    13. Bolhaar, Jonneke & Kuijpers, Sonny & Webbink, Dinand & Zumbuehl, Maria, 2024. "Does replacing grants by income-contingent loans harm enrolment? New evidence from a reform in Dutch higher education," Economics of Education Review, Elsevier, vol. 101(C).
    14. Rossana Patron & Marcel Vaillant, 2012. "Can Education Policy Address The Wage Gap? A Note On Public Skill Formation In Developing Countries," Journal of International Development, John Wiley & Sons, Ltd., vol. 24(3), pages 369-378, April.
    15. Marcel Gerard, 2010. "Financing Bologna Students' Mobility," Taxation Papers 26, Directorate General Taxation and Customs Union, European Commission.
    16. Romina Boarini & Joaquim Oliveira Martins & Hubert Strauss & Christine de la Maisonneuve & Giuseppe Nicoletti, 2008. "Investment in Tertiary Education: Main Determinants and Implications for Policy," CESifo Economic Studies, CESifo Group, vol. 54(2), pages 277-312.
    17. Chevalier, Arnaud & Harmon, Colm & O'Sullivan, Vincent & Walker, Ian, 2013. "The Impact of Parental Income and Education on the Schooling of Children," Papers WP468, Economic and Social Research Institute (ESRI).
    18. Lergetporer, Philipp & Woessmann, Ludger, 2022. "Income Contingency and the Electorate's Support for Tuition," IZA Discussion Papers 14991, Institute of Labor Economics (IZA).
    19. Bernhard Eckwert & Itzhak Zilcha, 2011. "Competition in Funding Higher Education," CESifo Working Paper Series 3588, CESifo.
    20. Bonin, Holger, 2017. "The Potential Economic Benefits of Education of Migrants in the EU," IZA Research Reports 75, Institute of Labor Economics (IZA).

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:taf:edecon:v:16:y:2008:i:3:p:245-260. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Chris Longhurst (email available below). General contact details of provider: http://www.tandfonline.com/CEDE20 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.