Universities' competition under dual tuition system

Alla Fridman () and Alexey Verbetsky ()
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Alla Fridman: National Research University Higher School of Economics
Alexey Verbetsky: School of Public Policy, Russian Presidential Academy of National Economy and Public Administration
Authors registered in the RePEc Author Service: Alla Friedman

Economics Bulletin, 2017, vol. 37, issue 3, 2122-2132

Abstract: The paper proposes a model of strategic interaction of universities under dual tuition system used in Russia, where universities combine the state-financed enrollment provided for free with the enrollment in excess of state quota provided at paid basis. It is demonstrated that the impact of state-financed higher education expenditures on the education quality and tuition depends on the choice of the policy instrument: an increase in per student subsidy under the same total quota improves education quality and raises tuition fee while an increase in quota under the same per student allotment reduces both education quality and tuition fees. It is also demonstrated that both policies have positive impact on total enrollment but do not necessarily result in social welfare improvement.

Keywords: Higher education; educational finance; strategic quality competition; resource allocation (search for similar items in EconPapers)
JEL-codes: D4 I2 (search for similar items in EconPapers)
Date: 2017-09-27
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Citations: View citations in EconPapers (1)

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