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高校预算软约束的制度成因及其治理
[Institutional Causality of Soft Budget Constraints in Chinese Higher Education Sector and its Implications for Governance]

Author

Listed:
  • Huang, Weiting
  • Pang, Xiaobo

Abstract

A wide range of financial distress has emerged in Chinese higher education sector, and this paper aims to explain it. We pointed out that soft budget constraint is the root cause of the financial distress; our main tasks are to identify the institutional causality of soft budget constraint and its applications for governance. We concluded three institutional causalities: quasi-public goods nature of higher educational serves; affiliated relationship between government and colleges; misaligned of the objection-incentive arrangement for college chairman. Based on the above three points, we provided some solutions to hardening the budget constraints.

Suggested Citation

  • Huang, Weiting & Pang, Xiaobo, 2008. "高校预算软约束的制度成因及其治理 [Institutional Causality of Soft Budget Constraints in Chinese Higher Education Sector and its Implications for Governance]," MPRA Paper 11500, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:11500
    as

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    References listed on IDEAS

    as
    1. Milton Friedman, 1997. "Public Schools: Make Them Private," Education Economics, Taylor & Francis Journals, vol. 5(3), pages 341-344.
    2. Barr, Nicholas, 2003. "Financing higher education: lessons from the UK debate," LSE Research Online Documents on Economics 287, London School of Economics and Political Science, LSE Library.
    3. Guofu Tan & Justin Yifu Lin, 1999. "Policy Burdens, Accountability, and the Soft Budget Constraint," American Economic Review, American Economic Association, vol. 89(2), pages 426-431, May.
    4. J. Kornai & E. Maskin & G. Roland, 2004. "Understanding the Soft Budget Constraint," Voprosy Ekonomiki, NP Voprosy Ekonomiki, issue 11.
    5. Kornai, Janos, 1998. "The Concept of the Soft Budget Constraint Syndrome in Economic Theory," Journal of Comparative Economics, Elsevier, vol. 26(1), pages 11-17, March.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    soft budget constraints; institutional causality; governance; higher education finance;
    All these keywords.

    JEL classification:

    • P36 - Political Economy and Comparative Economic Systems - - Socialist Institutions and Their Transitions - - - Consumer Economics; Health; Education and Training; Welfare, Income, Wealth, and Poverty
    • I22 - Health, Education, and Welfare - - Education - - - Educational Finance; Financial Aid

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