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The differential effects of competitive funding on the production frontier and the efficiency of universities.
- Source :
-
Economics of Education Review . Jun2016, Vol. 52, p91-104. 14p. - Publication Year :
- 2016
-
Abstract
- European governments increasingly employ competitive university funding to improve performance in higher education. The framework that is developed in this paper suggests a donor-specific trade-off between fostering best performing universities and increasing university efficiency when introducing competitive funding in the university sector. We test this assertion based on a university-level panel dataset across eight European countries from 1994–2006. Estimating a simultaneous two-stage Stochastic Frontier Approach, we find that international public funds decrease the productivity of the best performing universities, which suggests a non-negligible effect because of the administrative burden induced by competitive funding. However, the competition for international public funds also disciplines universities as evidenced by a positive impact on efficiency. Conversely, tuition fees enhance the productivity of the best performing universities but increase the spread of universities with lower productivity, which suggests a strong sorting effect. [ABSTRACT FROM AUTHOR]
Details
- Language :
- English
- ISSN :
- 02727757
- Volume :
- 52
- Database :
- Academic Search Index
- Journal :
- Economics of Education Review
- Publication Type :
- Academic Journal
- Accession number :
- 115800406
- Full Text :
- https://doi.org/10.1016/j.econedurev.2016.01.007