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State monopoly in higher education as a rent seeking industry

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  • Mitsopoulos, Michael
  • Pelagidis, Theodore

Abstract

In Greece, the provision of tertiary education is permitted, by the constitution, only to "public" institutions where faculty and administrators are civil servants and public officials respectively. We construct an argument and present statistical data that describe the situation observed in Greece, where the community of higher education providers decides in the name of the whole society on the extent to which the provision of these services is a (state) monopoly. We see that in the context of our argument the society has to override the decision of the educational community regarding the provision of these services if it desires to see the community of educational services providers to allocate more time towards their profession and less time towards rent protection and/or extraction. We argue that once reform, that is the removal of the state monopoly, is introduced the educational community will allocate more effort towards educational related activities and less effort towards rent protection while at the same time it will accept a new "equilibrium" in which education related activities are rewarded more generously.

Suggested Citation

  • Mitsopoulos, Michael & Pelagidis, Theodore, 2006. "State monopoly in higher education as a rent seeking industry," MPRA Paper 106957, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:106957
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    File URL: https://mpra.ub.uni-muenchen.de/106957/1/MPRA_paper_106957.pdf
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    References listed on IDEAS

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    1. Mueller,Dennis C., 2003. "Public Choice III," Cambridge Books, Cambridge University Press, number 9780521894753, October.
    2. J. P. Raines & Charles G. Leathers, 2003. "The Economic Institutions of Higher Education," Books, Edward Elgar Publishing, number 2721.
    3. Rodrik, Dani, 1989. "Promises, Promises: Credible Policy Reform via Signalling," Economic Journal, Royal Economic Society, vol. 99(397), pages 756-772, September.
    4. John Williamson, 1994. "The Political Economy of Policy Reform," Peterson Institute Press: All Books, Peterson Institute for International Economics, number 68, January.
    5. Kimenyi, Mwangi S & Mbaku, John M, 1993. "Rent-Seeking and Institutional Stability in Developing Countries," Public Choice, Springer, vol. 77(2), pages 385-405, October.
    6. Torsten Persson & Guido Tabellini, 2002. "Political Economics: Explaining Economic Policy," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262661314, April.
    7. Mueller,Dennis C. (ed.), 1997. "Perspectives on Public Choice," Cambridge Books, Cambridge University Press, number 9780521553773, October.
    8. Dani Rodrik, 1996. "Understanding Economic Policy Reform," Journal of Economic Literature, American Economic Association, vol. 34(1), pages 9-41, March.
    9. repec:zbw:bofitp:2003_004 is not listed on IDEAS
    10. Fernandez, Raquel & Rodrik, Dani, 1991. "Resistance to Reform: Status Quo Bias in the Presence of Individual-Specific Uncertainty," American Economic Review, American Economic Association, vol. 81(5), pages 1146-1155, December.
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    Cited by:

    1. Muller, Seán M, 2017. "Academics as rent seekers: distorted incentives in higher education, with reference to the South African case," International Journal of Educational Development, Elsevier, vol. 52(C), pages 58-67.
    2. Som Pal Baliyan & Pritika Singh Baliyan, 2018. "Socio-economic Factors as Predictors of Undergraduate Students’ Attitude towards Entrepreneurship in Botswana," Journal of Entrepreneurship and Business Innovation, Macrothink Institute, Journal of Entrepreneurship and Business Innovation, vol. 5(1), pages 1-43, December.

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    More about this item

    Keywords

    Higher Education; Policy Reforms; Rent Seeking; Greece;
    All these keywords.

    JEL classification:

    • I23 - Health, Education, and Welfare - - Education - - - Higher Education; Research Institutions

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