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University funding systems: impact on research and teaching

John Beath, Joanna Poyago-Theotoky and David Ulph

No 2011-1, Economics Discussion Papers from Kiel Institute for the World Economy (IfW)

Abstract: We address 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 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 systems; higher education; research quality; teaching quality; university budget constraint (search for similar items in EconPapers)
JEL-codes: I21 I22 I23 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-edu, nep-lab and nep-sog
Date: 2011
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Journal Article: University funding systems: Impact on research and teaching (2012) Downloads
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