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University Funding Systems and their Impact on Research and Teaching: A General Framework

John Beath (), Joanna Poyago-Theotoky and David Ulph
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John Beath: University of St Andrews
David Ulph: Inland Revenue

Discussion Paper Series from Department of Economics, Loughborough University

Abstract: This paper addresses the following question: how does a higher education funding system influence the trade-off that universities make between research and teaching? We do so by constructing a general model that allows universities to choose actively the quality of their teaching and research when faced with different funding systems. In particular, we derive the feasible sets that face universities under such systems and show how, as the parameters of the system are varied, the nature of the university system itself changes. The “culture” of the university system thus becomes endogenous. This makes the model useful for the analysis of reforms in funding and also for international comparisons.

Keywords: University funding system; higher education; teaching quality; research quality; research elite. (search for similar items in EconPapers)
JEL-codes: I21 I22 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-edu, nep-hpe, nep-lab and nep-sog
Date: 2005-04
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Persistent link: https://EconPapers.repec.org/RePEc:lbo:lbowps:2005_2

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