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Fiscal decentralization and the performance of higher education institutions: the case of Europe

Julien Jacqmin () and Mathieu Lefebvre ()

Working Papers of BETA from Bureau d'Economie Théorique et Appliquée, UDS, Strasbourg

Abstract: This paper empirically evaluates the impact of fiscal decentralization on the performance of higher education systems. To test this relationship,we build up a panel dataset composed of European countries. Countrylevel performance is measured by an indicator using data from the Shanghai ranking. Using a dynamic panel approach, we find that a higher share of government spending coming from decentralized levels of governmentsleads to an improvement of the performance of research-intensive higher education institutions. This result is confirmed by the use of an instrumental variable approach. We argue that a more decentralized higher education system increases the ability to attract and retain top scholars.

Keywords: fiscal decentralization; ranking; higher education institutions. (search for similar items in EconPapers)
JEL-codes: I28 H52 H75 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-edu and nep-eur
Date: 2017
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Persistent link: https://EconPapers.repec.org/RePEc:ulp:sbbeta:2017-31

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