IDEAS home Printed from https://ideas.repec.org/p/lan/wpaper/574022.html
   My bibliography  Save this paper

Funding formulae where costs legitimately differ: the case of higher education in England

Author

Listed:
  • G Johnes

Abstract

The institutional framework for the funding of higher education in the UK is discussed. In England, much of the financial support for teaching and learning, especially of ‘home and EU’ undergraduates, is channelled through the Higher Education Funding Council for England (HEFCE). HEFCE operates a formula funding mechanism, though in the wake of recent policy reforms - which include the introduction of differential tuition fees - this is likely to change. Some simple economic models of funding mechanisms which may be suitable for application in this context are constructed and evaluated. Implications for the design of future policies are discussed.

Suggested Citation

  • G Johnes, 2005. "Funding formulae where costs legitimately differ: the case of higher education in England," Working Papers 574022, Lancaster University Management School, Economics Department.
    • Handle: RePEc:lan:wpaper:574022
    as

    Download full text from publisher

    File URL: http://www.lancaster.ac.uk/media/lancaster-university/content-assets/documents/lums/economics/working-papers/FundingFormulae.pdf
    Download Restriction: no
    ---><---

    Other versions of this item:

    References listed on IDEAS

    as
    1. Philip Andrew Stevens, 2005. "A Stochastic Frontier Analysis of English and Welsh Universities," Education Economics, Taylor & Francis Journals, vol. 13(4), pages 355-374.
    2. Baumol, William J, 1982. "Contestable Markets: An Uprising in the Theory of Industry Structure," American Economic Review, American Economic Association, vol. 72(1), pages 1-15, March.
    3. Johnes, Geraint & Johnes, Jill, 2009. "Higher education institutions' costs and efficiency: Taking the decomposition a further step," Economics of Education Review, Elsevier, vol. 28(1), pages 107-113, February.
    4. Izadi, Hooshang & Johnes, Geraint & Oskrochi, Reza & Crouchley, Robert, 2002. "Stochastic frontier estimation of a CES cost function: the case of higher education in Britain," Economics of Education Review, Elsevier, vol. 21(1), pages 63-71, February.
    5. Johnes, Geraint, 1997. "Costs and Industrial Structure in Contemporary British Higher Education," Economic Journal, Royal Economic Society, vol. 107(442), pages 727-737, May.
    6. Glass, J C & McKillop, Donal G & Hyndman, N, 1995. "Efficiency in the Provision of University Teaching and Research: An Empirical Analysis of UK Universities," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 10(1), pages 61-72, Jan.-Marc.
    7. de Groot, Hans & McMahon, Walter W & Volkwein, J Fredericks, 1991. "The Cost Structure of American Research Universities," The Review of Economics and Statistics, MIT Press, vol. 73(3), pages 424-431, August.
    8. repec:lan:wpaper:1120 is not listed on IDEAS
    9. repec:lan:wpaper:1057 is not listed on IDEAS
    10. Geraint Johnes, 1996. "Multi-product cost functions and the funding of tuition in UK universities," Applied Economics Letters, Taylor & Francis Journals, vol. 3(9), pages 557-561.
    11. Cohn, Elchanan & Rhine, Sherrie L W & Santos, Maria C, 1989. "Institutions of Higher Education as Multi-product Firms: Economies of Scale and Scope," The Review of Economics and Statistics, MIT Press, vol. 71(2), pages 284-290, May.
    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. Beath, John & Poyago-Theotoky, Joanna & Ulph, David, 2012. "University funding systems: Impact on research and teaching," Economics - The Open-Access, Open-Assessment E-Journal (2007-2020), Kiel Institute for the World Economy (IfW Kiel), vol. 6, pages 1-24.
    2. Tommaso Agasisti, 2016. "Cost structure, productivity and efficiency of the Italian public higher education industry 2001--2011," International Review of Applied Economics, Taylor & Francis Journals, vol. 30(1), pages 48-68, January.

    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. Liang-Cheng Zhang & Andrew C. Worthington, 2018. "Explaining Estimated Economies of Scale and Scope in Higher Education: A Meta-Regression Analysis," Research in Higher Education, Springer;Association for Institutional Research, vol. 59(2), pages 156-173, March.
    2. repec:lan:wpaper:4509 is not listed on IDEAS
    3. repec:lan:wpaper:4381 is not listed on IDEAS
    4. repec:lan:wpaper:4813 is not listed on IDEAS
    5. Marvin A. Titus & Adriana Vamosiu & Kevin R. McClure, 2017. "Are Public Master’s Institutions Cost Efficient? A Stochastic Frontier and Spatial Analysis," Research in Higher Education, Springer;Association for Institutional Research, vol. 58(5), pages 469-496, August.
    6. repec:lan:wpaper:1043 is not listed on IDEAS
    7. E Thanassoulis & G Johnes & J Johnes, 2005. "An analysis of costs in institutions of higher education in England," Working Papers 566942, Lancaster University Management School, Economics Department.
    8. repec:lan:wpaper:1058 is not listed on IDEAS
    9. repec:lan:wpaper:1044 is not listed on IDEAS
    10. repec:lan:wpaper:1121 is not listed on IDEAS
    11. Shukhrat Kholmuminov & Robert E Wright, 2017. "Cost efficiency analysis of public higher education institutions in Uzbekistan," Working Papers 1704, University of Strathclyde Business School, Department of Economics.
    12. Sabine Gralka, 2018. "Persistent inefficiency in the higher education sector: evidence from Germany," Education Economics, Taylor & Francis Journals, vol. 26(4), pages 373-392, July.
    13. G. Johnes, 1997. "Costs in UK Higher Education: A System-Wide Perspective," CERT Discussion Papers 9707, Centre for Economic Reform and Transformation, Heriot Watt University.
    14. Johnes, Geraint & Johnes, Jill, 2009. "Higher education institutions' costs and efficiency: Taking the decomposition a further step," Economics of Education Review, Elsevier, vol. 28(1), pages 107-113, February.
    15. repec:lan:wpaper:4358 is not listed on IDEAS
    16. Tzeremes, Nickolaos & Halkos, George, 2010. "A DEA approach for measuring university departments’ efficiency," MPRA Paper 24029, University Library of Munich, Germany.
    17. T Agasisti & G Johnes, 2009. "Cost Structure, Efficiency and Heterogeneity in US Higher Education: An Empirical Analysis," Working Papers 599308, Lancaster University Management School, Economics Department.
    18. repec:lan:wpaper:4487 is not listed on IDEAS
    19. Torben Schubert, 2014. "Are there scale economies in scientific production? On the topic of locally increasing returns to scale," Scientometrics, Springer;Akadémiai Kiadó, vol. 99(2), pages 393-408, May.
    20. Colin Glass, J. & McCallion, Gillian & McKillop, Donal G. & Rasaratnam, Syamarlah & Stringer, Karl S., 2006. "Implications of variant efficiency measures for policy evaluations in UK higher education," Socio-Economic Planning Sciences, Elsevier, vol. 40(2), pages 119-142, June.
    21. Longlong, Hou & Fengliang, Li & Weifang, Min, 2009. "Multi-product total cost functions for higher education: The case of Chinese research universities," Economics of Education Review, Elsevier, vol. 28(4), pages 505-511, August.
    22. Mehdi Rhaiem, 2017. "Measurement and determinants of academic research efficiency: a systematic review of the evidence," Scientometrics, Springer;Akadémiai Kiadó, vol. 110(2), pages 581-615, February.
    23. repec:lan:wpaper:4792 is not listed on IDEAS
    24. George E. Halkos & Nickolaos G. Tzeremes & Stavros A. Kourtzidis, 2010. "An application of statistical interference in DEA models: An analysis of public owned university departments' efficiency," EERI Research Paper Series EERI_RP_2010_17, Economics and Econometrics Research Institute (EERI), Brussels.
    25. Jiro Nemoto & Noriko Furumatsu, 2014. "Scale and scope economies of Japanese private universities revisited with an input distance function approach," Journal of Productivity Analysis, Springer, vol. 41(2), pages 213-226, April.
    26. Gralka, Sabine, 2018. "Stochastic frontier analysis in higher education: A systematic review," CEPIE Working Papers 05/18, Technische Universität Dresden, Center of Public and International Economics (CEPIE).
    27. repec:lan:wpaper:1120 is not listed on IDEAS
    28. Agasisti, Tommaso & Barra, Cristian & Zotti, Roberto, 2016. "Evaluating the efficiency of Italian public universities (2008–2011) in presence of (unobserved) heterogeneity," Socio-Economic Planning Sciences, Elsevier, vol. 55(C), pages 47-58.
    29. E Thanassoulis & M Kortelainen & G Johnes & J Johnes, 2011. "Costs and efficiency of higher education institutions in England: a DEA analysis," Journal of the Operational Research Society, Palgrave Macmillan;The OR Society, vol. 62(7), pages 1282-1297, July.
    30. G. Thomas Sav, 2012. "Stochastic Cost Inefficiency Estimates and Rankings of Public and Private Research and Doctoral Granting Universities," Journal of Knowledge Management, Economics and Information Technology, ScientificPapers.org, vol. 2(3), pages 1-13, June.
    31. Laureti, Tiziana & Secondi, Luca & Biggeri, Luigi, 2014. "Measuring the efficiency of teaching activities in Italian universities: An information theoretic approach," Economics of Education Review, Elsevier, vol. 42(C), pages 147-164.

    More about this item

    Keywords

    funding; education;

    Statistics

    Access and download statistics

    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:lan:wpaper:574022. 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: Giorgio Motta (email available below). General contact details of provider: https://edirc.repec.org/data/delanuk.html .

    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.