INTRANET

Quality, efficiency and equity: the contribution of economic theory to higher education research : Case study: funding models and principles

Ben Jongbloed

Higher education policy research often touches on economic questions, that is: how to allocate scarce resources in the way that contributes most to the objectives of raising quality and efficiency in teaching and research and providing access opportunities for students. Amongst other things, the Economics of Higher Education deals with the following issues:

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Why do students attend higher education?

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Why do governments intervene in the higher education sector?

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How may governments fund the higher education institutions?

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What mechanisms to use and incentives to incorporate into the public funding of education?

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How can students be asked to contribute towards meeting the cost of their education?

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What can governments do to (financially) support the students?

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Why and how should research be publicly funded?

During the course of providing an overview of the contribution of economic theory towards answering these questions we will get a better understanding of the pro and contras of introducing market-type steering mechanisms into higher education policies. To clarify the theory, practical examples and empirical evidence is given.