Budget Uncertainty and Faculty Contracts: A Dynamic Framework for Comparative Analysis

Konstantin Sonin, I. Khovanskaya and M. Yudkevich

Voprosy Ekonomiki, 2008, issue 12

Abstract: We study hiring decisions made by competing universities in a dynamic framework, focusing on the structure of university finance. Universities with annual state-approved financing underinvest in high-quality faculty, while universities that receive a significant part of their annual income from returns on endowments hire fewer but better faculty and provide long-term contracts. If university financing is linked to the number of students, there is additional pressure to hire low-quality short-term staff. An increase in the university’s budget might force the university to switch its priorities from "research" to "teaching" in equilibrium. We employ our model to discuss the necessity for state-financed endowments, and investigate the political economics of competition between universities, path-dependence in the development of the university system, and higher-education reform in emerging market economies.

Date: 2008
References: Add references at CitEc
Citations:

Downloads: (external link)
https://www.vopreco.ru/jour/article/viewFile/1383/1385 (application/pdf)

Related works:
Working Paper: Budget Uncertainty and Faculty Contracts: A Dynamic Framework for Comparative Analysis (2008)
Working Paper: Budget Uncertainty and Faculty Contracts: A Dynamic Framework for Comparative Analysis (2007)
Working Paper: Budget Uncertainty and Faculty Contracts: A Dynamic Framework for Comparative Analysis (2007)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:nos:voprec:y:2008:id:1383

DOI: 10.32609/0042-8736-2008-12-72-83

Access Statistics for this article

More articles in Voprosy Ekonomiki from NP Voprosy Ekonomiki
Bibliographic data for series maintained by NEICON ().