Incentive effects in higher education: an improved funding model for Universities

Peter Ainsworth; Tom McKenzie; Al Stroyny

doi:10.1111/ecaf.12194

Incentive effects in higher education: an improved funding model for Universities

Peter Ainsworth (Lead / Corresponding author)
, Tom McKenzie
, Al Stroyny

Research output: Contribution to journal › Article › peer-review

3 Citations (Scopus)

402 Downloads (Pure)

Abstract

This paper examines the incentive effects of risk-sharing between student and University in the English system. The “Graduate Premium” has been widely reported and has been used to justify rising attendance at University and increased individual and/or governmental expenditure on tertiary education. But this premium is simply the mean of a wide distribution, varying, inter alia, by subject, institution, year of graduation and individual. We assume that Universities exist in a state of monopolistic competition and are subject to a budget constraint and find that a funding model that incorporates risk-sharing improves the efficiency of educational delivery while maintaining subject diversity and access.

Original language	English
Pages (from-to)	239-257
Journal	Economic Affairs
Volume	36
Issue number	3
DOIs	https://doi.org/10.1111/ecaf.12194
Publication status	Published - 21 Oct 2016

UN SDGs

This output contributes to the following UN Sustainable Development Goals (SDGs)

SDG 4 Quality Education

Keywords

graduate premium
higher education policy
risk-sharing
student finance
universities

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10.1111/ecaf.12194Licence: Other

Author Accepted Manuscript
"This is the peer reviewed version of the following article:Ainsworth, P., McKenzie, T., and Stroyny, A. (2016) Incentive Effects in Higher Education: an Improved Funding Model for Universities. Economic Affairs, 36: 239–257, which has been published in final form at http://dx.doi.org/10.1111/ecaf.12194. This article may be used for non-commercial purposes in accordance with Wiley Terms and Conditions for Self-Archiving."
Accepted author manuscript, 196 KBLicence: Other

Cite this

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Incentive effects in higher education: an improved funding model for Universities

Abstract

UN SDGs

Keywords

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